Gold prices up B50 to B22,200

The Gold Traders Association this morning announced the buying prices at 21,709.12 baht per baht-weight for gold ornaments and 22,100 baht per baht-weight for gold bar.

The selling prices were set at 22,700 baht per baht-weight for gold ornaments, and 22,200 baht per baht-weight for gold bar. 

The prices rose 50 baht from yesterday’s close. 

The selling prices yesterday closed at 22,650 baht per baht-weight for gold ornaments, and 22,150 baht per baht-weight for gold bar.

The prices changed once on Friday, up 50 baht from the previous day. 

Bloomberg reported on Saturday gold posted the longest run of weekly gains in almost two years as Britain’s vote to quit the European Union fuelled speculation that central banks will boost economic stimulus.

Havens such as gold and silver are in demand on prospects for weaker economies.

Treasury yields fell to record lows along with sovereign rates from Spain to Japan as policy makers signalled their readiness to shore up economies. Governor Mark Carney said Thursday that the Bank of England could cut interest rates within months.

Gold and silver had the biggest first half gains in about four decades amid mounting speculation that interest rates in the US will remain low, which is a boon to precious metals because they don’t offer interest.

Expectations for US rate increases have been wound back since the Brexit vote, while investors continue to pile into exchange-traded funds backed by gold.

“Every hint at lower interest rates and at uncertainty is propelling gold and silver higher, whether that is rational or not,” Thorsten Proettel, a commodity analyst at Landesbank Baden-Wuerttemberg in Stuttgart, said by phone. “The governor of the Bank of England was the latest to play into this narrative.”

Gold futures for August delivery advanced 1.4% to settle at $1,339 an ounce at 1.55pm on the Comex in New York, capping a fifth straight weekly rise. Prices rallied 25% in the first half, the biggest such gain since 1979. For spot gold, the rally in the first half was the largest since 1974.

“What will drive the price of gold going forward is that by how much these central banks will ease their monetary policy, and that will serve as a catalyst for further movement,” said Naeem Aslam, chief market analyst at Think Forex UK Ltd.

Traders are pricing in a less-than 50% chance of higher US rates by the end of 2017, according to Fed funds futures.

Assets in gold-backed ETFs are also at the highest since 2013.