Gold prices fall B50 at B21,300

Gold prices dropped 50 baht to 21,300 baht per baht-weight in Bangkok on Saturday.

The Gold Traders Association announced the buying price at 21,200 baht and the selling price at 21,300 baht per baht-weight for bullion.

For ornaments, the buying and selling prices were 20,814.68 baht and 21,800 baht per baht-weight respectively.

The prices changed four times on Friday for total gain of 100 baht from the previous day.

Bloomberg reported from Singapore on Friday gold had climbed, trimming a second weekly decline, as a drop in equities boosted demand for the metal as haven.

Gold rose as much as 1% as European stocks retreated for a third day after weakening corporate earnings eroded investor confidence. The metal gained even after Regional Federal Reserve chiefs for Boston and Kansas City said Thursday that the central bank risks stoking an asset bubble by delaying raising interest rates for too long.

Bullion rallied 20% this year as traders pared back expectations for the pace of US rate increases, boosting gold’s appeal against interest-bearing assets. Still, prices are down 1.2% this week as the dollar rebounded, curbing demand for an alternative investment.

“Gold has managed to resist the headwind being generated by the stronger dollar, with the focus instead being fixed on lower stocks and falling bond yields,” Ole Hansen, head of commodity strategy at Saxo Bank A/S, said by e-mail.

Bullion for immediate delivery gained 0.8 percent to $1,274.10 an ounce by 11.51am in London, according to Bloomberg generic pricing. Prices reached the highest in more than a year on May 2.

Holdings in bullion-backed exchange-traded products increased for a 13th day on Thursday, data compiled by Bloomberg show. Assets rose 3.7 tonnes to 1,814.7 tons, the highest since December 2013.