Gold prices rise B50 to B18,850

Gold prices increased by 45-50 baht at 9.02am on Saturday.

The Gold Traders Association announced the buying price at 18,750 baht and the selling price at 18,850 baht per baht-weight for gold bars.

The buying price for gold ornaments was 18,480.04 while their selling price was 19,250 baht per baht-weight.

In world markets, gold futures fell from a two-week high as signs of an improving US economy boosted the dollar, cutting the metal’s appeal as an alternative investment, according to Bloomberg.

The Bloomberg Dollar Spot Index rose for a second day after government data yesterday showed the number of people seeking jobless benefits averaged the lowest in eight years.

A separate report this week showed job openings in August at the highest in 13 years. Bullion still posted a weekly advance amid growth concerns in China and Europe.

Gold fell 8.4% last quarter as signs of a quickening US recovery helped push the dollar to its biggest gain in six years. The metal rallied the most in two months yesterday after Federal Reserve policy makers said a global economic slowdown poses potential risks to the US, sparking speculation that the central bank will keep interest rates lower for a longer period.

“The dollar is much stronger today, and gold is consolidating its gains,” James Cordier, the founder of Optionsellers.com in Tampa, Florida, told Bloomberg.

Gold futures for December delivery fell 0.3% to settle at $1,221.70 an ounce at 1.51pm on the Comex in New York. Prices reached $1,234 yesterday, the highest since Sept. 23, on the way to the first weekly gain since August.

The commodity slid to $1,183.30 on Oct 6, the lowest since Dec 31. Money managers have cut their net-long position, or bets on higher prices, to the lowest this year, US government data show. Holdings in gold-backed exchange-traded products are at a five-year low, according to data compiled by Bloomberg.