Gold prices rebound after three-day slump
- 28 Jan 2017 at 10:50
- WRITER: ONLINE REPORTERS
Gold prices in Bangkok jumped 150 baht on Saturday.
The Gold Traders Association announced the buying price at 19,850 baht and the selling price at 19,950 baht per baht-weight for bullion.
For ornaments, the buying and selling prices were 19,495.76 baht and 20,450 baht per baht-weight respectively.
The prices changed three times on Friday from the previous day for a net loss of 150 baht per baht-weight.
Bloomberg reported from London and New York on Saturday gold futures posted the longest streak of losses since November as buying from China stopped ahead of its week-long holiday to celebrate the Lunar New Year.
Prices dropped on Friday for the fourth straight day, cutting the year’s gains.
China, the biggest consumer of gold, increased gold purchases in the run-up to the start of the Year of the Rooster this week, when bars or jewellery made from the metal are traditionally given as gifts.
"The Chinese holiday can exaggerate some of the moves," Bob Haberkorn, a senior market strategist at RJO Futures in Chicago, said in a telephone interview. "We’re going to get lighter volume coming in. A lot of the focus is moving into risk assets."
Gold futures for April delivery fell 0.1% to settle at $1,191.10 at 1.42pm on the Comex in New York. Futures earlier fell as much as 0.8%, touching the lowest since Jan 11. The four-day losing streak is the longest since Nov 14.
After touching a two-month high earlier this week, gold’s rally has withered as surging stock markets fuelled investor appetite for risk. The Dow Jones Industrial Average climbed above 20,000 for the first time this week and the MSCI All-Country World Index is near a record.
The metal pared earlier losses Friday after a report showed US economic growth slowed more than forecast last quarter on the biggest drag from trade in six years and more moderate consumer spending. Business investment picked up, which may be a harbinger for faster expansion in 2017.
"We expect full-year Chinese demand to still fall short of levels seen in 2015," Nell Agate, a Citigroup Inc metals analyst, said by e-mail from London. "It’s possible that Chinese jewellery sales are likely to slow as the Chinese break for new year festivities."