Gold price sees steep fall despite major US rate cut
The price of gold dropped by Bt500 per baht weight on Tuesday morning (March 17), the Gold Traders Association reported.
Buying price of a bar of gold was Bt22,600 per baht weight and selling price was Bt22,700. Buying price of gold ornaments was Bt22,194.24 per baht weight and selling price Bt23,200.
The prices dropped from Monday’s close (March 16) when a gold bar cost Bt23,100 to buy and Bt23,200 to sell, while gold ornaments cost Bt22,679.36 to buy and Bt23,700 to sell.
Gold contracts in COMEX futures to be delivered in April dropped by US$30.20 to $1,486.50 per ounce on Monday’s close after rising the previous day.
Gold price dropped over 5 per cent in the previous week, the biggest drop when compared week on week in three years due to uncertainty following the impact on the global economy caused by Covid-19 outbreak.
The price of gold also did not gain positive sentiment from the weakening dollar after the US Federal Reserve made an interest rate cut of one percentage point to 0.00-0.25 per cent and used the “quantitative easing” bond purchase programme with a limit of US$700 to relieve the impact of Covid-19 outbreak on the US economy.
