Gold rises B50 to B18,900

Gold prices climbed 50 baht to 18,900 baht per baht-weight in Bangkok on Saturday.

The Gold Traders Association announced the buying price at 18,800 baht and the selling price at 18,900 baht per baht-weight for bullion.

For ornaments, the buying and selling prices were 18,525.52 baht and 19,300 baht per baht-weight respectively.

The prices were adjusted four times on Friday for a total loss of 150 baht per baht-weight from the previous day.

Bloomberg reported from New York on Saturday gold futures rallied 5.3% in January, the best gain in a year.

The returns were far better in mining stocks, with an index of South African producers jumping 35% for January, the most since at least 1995.

Turmoil in Chinese financial markets, plunging oil prices and signs of softening US growth left investors reeling in January, boosting demand for traditional safe-haven assets like gold.

Rising bets that the Federal Reserve will hold off on further interest-rate increases added to the appeal of bullion.

While losses deepened in other metals, gold outperformed and holdings in exchange-traded funds backed by the metal rose to the highest since November.

“Interest-rate jitters going forward are what brought gold up,” James Cordier, the founder of Optionsellers.com in Tampa, Florida, said in a telephone interview. “With stock markets crashing all over the world and the US economy growing slowly, nothing is pointing to more rate hikes, and that’s why gold is rallying.”

Gold futures for April delivery rose less than 0.1% to settle at $1,116.40 an ounce at 1.48pm on the Comex. The gain for the month was the biggest since January 2015.

Higher rates reduce the appeal of precious metals, which don’t pay interest or offer returns, unlike competing assets.

Gold stocks were propelled higher during January, especially in South Africa as the weaker rand boosted profit margins. Harmony Gold Mining Co soared 87%, recovering from the lowest levels in two decades.