Gold jumps B200 on weak dollar

Gold prices rose 200 baht to 22,200 baht per baht-weight in Bangkok on Saturday.

The Gold Traders Association announced the buying price at 22,100 baht and the selling price at 22,200 baht per baht-weight for bullion.

For ornaments, the buying and selling prices were 21,709.12 baht and 22,700 baht per baht-weight respectively.

The local prices changed five times on Friday for a net loss of 150 baht per baht-weight from the previous day.

Bloomberg reported from New York gold futures gained for a second straight week as the dollar weakened and the US economy grew less than expected in the second quarter, boosting demand for the metal as a store of value.

Gross domestic product in America rose at a 1.2% annualised rate last quarter, a government report showed. The median forecast of economists surveyed by Bloomberg called for a 2.5% increase. A gauge of the dollar dropped for a fourth day and reached a four-week low.

Gold has rallied this year as the Federal Reserve delayed raising interest rates, making assets that don’t generate a yield more attractive for investors. Worries about the health of the global economy, the US presidential election and the UK’s decision to leave the European Union have added to demand for haven assets, pushing bullion prices up about 28% in 2016.

“You just saw the probability of a rate hike fall, and that’s being reflected in the dollar and gold right now,” Tim Evans, the chief market strategist at Long Leaf Trading Group Inc in Chicago, said in a telephone interview. “If we see consistent numbers like we’re seeing this morning with this GDP number, we can assume no hike is going to happen, and gold is going to respond favourably to that.”

Gold futures for December delivery rose 1.2% to settle at $1,357.50 an ounce at 1.45pm. on the Comex in New York. Prices climbed 2.8% this month.

Holdings in exchange-traded funds backed by gold added 2.65 tonnes to 2,002 tonnes on Thursday, data compiled by Bloomberg show.