Gold falls B100 to B18,100

Gold prices dropped 100 baht per baht-weight in Bangkok on Friday.

The Gold Traders Association announced the buying price at 18,000 baht and the selling price at 18,100 baht per baht-weight for gold bars.

For ornaments, the buying and selling prices were 17,737.20 baht and 18,500 baht per baht-weight respectively.

The prices were adjusted twice on Wednesday — the market closed on Thursday due to a holiday, ending 50 baht higher than the levels seen in the previous day.

In world markets, Bloomberg reported from Melbourne gold held declines, heading for its biggest monthly drop in two years as the US economy expanded at a faster pace in the second quarter, bolstering expectations of a rate rise this year and boosting the dollar.

Bullion for immediate delivery was little changed at $1,089.29 an ounce at 8.36am in Singapore, according to Bloomberg generic pricing. It was down 7.1% this month after last week falling to $1,077.40, the lowest since February 2010.

The dollar maintained gains, set for its best month since January as speculation firmed that the Federal Reserve will boost interest rates at its next meeting. Increasing rates curbs the appeal of gold as the metal doesn’t pay interest or give returns like competing assets such as equities and bonds.

“Gold prices will follow a downward trajectory from here to the second half of next year,” said Vyanne Lai, an economist at National Australia Bank Ltd in Melbourne. Prices declined as the dollar strengthened, on the outlook for rate rises and amid weaker demand for physical gold, Ms Lai said.

Gold for December delivery, the contract with the most open interest, was little changed at $1,088.40 an ounce on the Comex in New York.