Gold steady at 19,450

Gold prices were unchanged at 19,450 baht per baht-weight in Bangkok on Saturday.

The Gold Traders Association announced the buying price at 19,350 baht and the selling price at 19,450 baht per baht-weight for bullion.

For ornaments, the buying and selling prices were 19,071.28 baht and 19,850 baht per baht-weight respectively.

On Friday, the prices were adjusted five times for a total loss of 50 baht from Thursday's close.

Bloomberg reported from New York on Saturday gold advanced to a six-week high as minutes of the Federal Reserve’s latest meeting increased speculation that the central bank will hold off raising interest rates until next year.

While Fed officials noted that hiring and consumer spending continued to improve, policy makers “decided that it was prudent to wait for additional information confirming that the economic outlook had not deteriorated,’’ minutes released Thursday showed. The odds of a rate increase in 2015 have dropped in the past month and traders and analysts surveyed by Bloomberg are the most bullish on gold in three weeks.

Signs that US growth may be slowing have helped gold rebound almost 8% from a five-year low set in July, even as Fed officials feel pretty good about the US economy and chair Janet Yellen has said the central bank still expects to raise rates this year. Higher borrowing costs curb the appeal of bullion, which doesn’t pay interest or give returns like other assets such as bonds and equities.

“With those statements from the Fed, we believe there’s less of a chance that they will raise rates this year,” David Meger, the director of metals trading at High Ridge Futures in Chicago, said in a telephone interview. “That’s why we’re seeing more of a risk-on trade across the board, including precious metals. Generally, higher interest rates are not a good environment for gold.”

Bullion prices

Gold futures for December delivery advanced 1% to settle at $1,155.90 an ounce at 1.47pm on the Comex in New York, after touching $1,159.30, the highest since Aug 24. Prices are up 1.7% this week.

Traders put the probability of a rate increase in December at 39%, down from 57% a month ago, according to Fed-fund futures data compiled by Bloomberg. The odds rise to 62% for a move in March.

“The Fed comments definitely helped to push gold higher,” Ross Norman, chief executive officer of Sharps Pixley, a London- based precious-metals dealer, said by phone. “There is a palpable shift in the mood in the gold market. If we lift another $20, we may make significant headway.”