Gold prices rise B100 to B19,250

Gold prices climbed 100 baht per baht-weight in Bangkok on Saturday.

The Gold Traders Association announced the buying price at 19,150 baht and the selling price at 19,250 baht per baht-weight for bullion.

For ornaments, the buying and selling prices were 18,874.20 baht and 19,650 baht per baht-weight respectively.

On Friday, the prices were adjusted six times, indicating high volatility, for a total gain of 100 baht per baht-weight from Thursday.

Bloomberg reported from London on Friday gold headed for the biggest weekly drop in more than a month as investors waited on economic data next week for guidance on when the Federal Reserve will raise interest rates.

Bullion added 0.2% in London on Friday after falling the previous four days. Prices retreated from the highest in almost seven weeks on Monday, when a rout in global markets boosted demand for a haven and cast doubt on whether US policy makers would increase borrowing costs in September. US jobs and manufacturing reports are due next week.

Data released on Thursday showed the US economy grew more than previously estimated in the second quarter. Traders are pricing in a 30% chance the Fed will raise rates next month, up from 24 percent two days ago. Market turmoil has pushed the Fed’s plan for a rate increase to December, according to Mohamed El-Erian, a Bloomberg View columnist and chief economic adviser at Allianz SE.

“Gold’s sensitivity to data could become more heightened as September’s meeting comes nearer,” Joni Teves, a precious metals analyst at UBS Group AG in London, said by phone Friday. “If the picture is convincing enough for people to shift their expectations on the Fed, that will have a big impact on gold.”

Gold for immediate delivery traded at $1,127.67 an ounce by 11.51am in London, according to Bloomberg generic pricing. Prices are down 2.9% this week. Futures for December delivery rose 0.4% to $1,126.70 on the Comex in New York.

Investors bought 1.8 tonnes through gold-backed funds as of Thursday, data compiled by Bloomberg show. Holdings are at 1,529.4 tonnes, the highest since July 30.