Gold gains on hopes of massive stimulus package

As of 10.29am, buying price of a bar of gold was Bt24,500 per baht weight and selling price Bt24,800, while buying price of gold ornaments was Bt24,058.92 per baht weight and selling price Bt25,300.
Buying price rose by Bt100 per baht weight, while selling price rose by Bt300 per baht weight from Tuesday’s close (March 18) when a gold bar cost Bt24,400 to buy and Bt24,500 to sell, while gold ornaments cost Bt23,967.96 to buy and Bt25,000 to sell.
Gold contracts in COMEX (Commodity Exchange) to be delivered in April spiked by US$93.2, or 5.95 per cent, to $1,660.8 per ounce on Tuesday’s close (March 24), marking a new high in 11 years since 2009.
The gold market has responded to the US Federal Reserve’s massive stimulus package which includes using unlimited quantitative easing bond purchase programme and increasing credit line by $300 billion, allowing businesses to borrow at lower interest cost to deal with economic impact caused by Covid-19 outbreak.
Gold price also gained support from the closure of three gold production plants in Switzerland due to the spread of Covid-19 virus which affected the supply of gold in the market.
Meanwhile, SPDR Gold Trust, the world’s largest gold Exchange Traded Fund increased gold holdings by 1.8 per cent to 923.99 tonnes.
Investors are keeping an eye on the US Congress in reaching an agreement on the White House’s measures to relieve the burden of the American people and business sectors affected by the Covid-19 disease.
Other metal prices are as follows:
Silver contracts to be delivered in May rose by 99.6 cents or 7.51 per cent, closing at US$14.257 per ounce.
Platinum contracts to be delivered in April rose by US$74.2 or 11.82 per cent, closing at US$701.7 per ounce.
Palladium contracts to be delivered in June rose by US$230 or 14.8 per cent, closing at US$1,786.90 per ounce.