Gold steady at B18,750

Gold prices were flat at its opening on Saturday.

The Gold Traders Association announced the buying price at 18,650 baht and the selling price at 18,750 baht per baht-weight for gold bars.

For ornaments, the buying and selling prices were 18,373.92 baht and 19,150 baht per baht-weight respectively.

The prices were adjusted twice on Friday, ending up 50 baht from the previous day.

In world markets, Bloomberg reported from London gold traded near a three-month low as the outlook for higher US interest rates this year outweighed demand for a haven spurred by Greece’s debt crisis.

Investors’ focus shifted to when the Federal Reserve will raise interest rates before Greece’s weekend referendum on austerity measures that may help to determine whether the country remains in the euro zone. A Labor Department report on Thursday showed US companies added 223,000 jobs in June while wages stagnated and the size of the labour force receded.

“Gold has disappointed in how it reacted to Greece,” Dan Smith, a senior adviser at Oxford Economics, said by phone from London on Friday. “The US has hit a soft patch, but our view is still that they will raise rates sooner rather than later.”

Gold for immediate delivery added 0.2% to $1,168.69 an ounce at 4.16pm in New York, according to Bloomberg generic pricing. On Thursday, the metal fell for the third straight day, touching $1,157.18, the lowest since March 18. The commodity has dropped 0.6% this week.

Futures for August delivery increased 0.4% to $1,167.80 on the Comex in New York, where floor trading was closed for a public holiday.

Polls show the outcome of Greece’s Sunday referendum on austerity is too close to call. Prime Minister Alexis Tsipras is campaigning for citizens to vote “no,” and vowed to sign off on creditor demands should people vote “yes”.

Job signals

With US jobs data signalling the economy is improving slowly following a first-quarter slump, Fed policy makers remain on track to raise rates later this year. Higher borrowing costs curb bullion’s allure because it doesn’t pay interest or give returns like other assets such as bonds and equities.

Holdings in gold-backed exchange-traded products fell for a fifth day on Thursday, the longest run in a month, data compiled by Bloomberg show. The assets are near a six-year low.