Gold steady at B19,000

Gold prices were unchanged at its opening on Saturday.

The Gold Traders Association announced the buying price at 18,900 baht and the selling price at 19,000 baht per baht-weight for gold bars.

For ornaments, the buying and selling prices were 18,631.64 baht and 19,400 baht per baht-weight respectively.

In world markets, Bloomberg reported from New York gold futures advanced after the US said the economy contracted in the first quarter, easing concern that the Federal Reserve will be quick to raise interest rates for the first time since 2006.

Gross domestic product shrank at a 0.7% annualised rate, mostly because of harsh winter weather, the Commerce Department said Friday. The government earlier estimated the economy grew 0.2%. With the expansion stalled, the Fed may be inclined to hold interest rates at record lows longer to ensure sustained growth.

The metal swung between year-to-date gains and losses more than 10 times in 2015, as traders tried to gauge when the central bank would boost borrowing costs. Higher interest rates erode the appeal of gold, which doesn’t pay interest, as investors seek higher-yielding assets, including new bonds.

“Talk of the weak numbers is supportive because the gold market was starting to set itself up for a potential June rise, and this reinforces the negative tone,” Frank McGhee, the head dealer at Alliance Financial in Chicago, said.

Gold futures for August delivery rose 0.1% to settle at $1,189.80 an ounce at 1.48pm on the Comex in New York, capping the first consecutive gain since May 18. Prices advanced 0.6% in May, the first monthly increase since January.