Tuesday, June 02, 2020

Gold price drops as China rebounds 

Apr 01. 2020
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By The Nation

The price of gold dropped by Bt300 per baht-weight in morning trade today (April 1), the Gold Traders Association reported.

As of 9.26am, the price per baht-weight of gold bar was Bt24,450 with a selling price of Bt24,650, while the buying price for gold ornaments was Bt24,013.44 per baht and the selling price Bt25,150.

Prices fell from Tuesday’s close (March 31), when gold bar cost Bt24,750 and was being sold at Bt24,950, while gold ornaments cost Bt24,301.48 to buy and Bt25,450 to sell.

Gold contracts in COMEX futures to be delivered in April dropped by 2.4 per cent, closing at US$1,603.60 per ounce on Tuesday (March 31), after investors sold gold in response to news that the China Manufacturing Purchasing Managers Index (PMI) skyrocketed in March and the US consumer confidence index was better than expected.

China’s National Bureau of Statistics reported today that the Manufacturing PMI – a measure of activity in Chinese factories – in March rose to 52 from 35.7 in February, while the Service PMI rose to 52.3 from 29.6. This indicates that China’s manufacturing and service have rebounded after shrinking in February.

Gold price was pressured by the strengthening dollar, which raised the cost of gold contracts for investors who hold other currencies.

Also, the gold price was hit by news that Russia’s central bank will suspend purchases for its gold reserves from April 1, offering no reasons for the decision.

However, the gold price is likely to rebound for the sixth straight quarter amid concerns over the spread of the Covid-19 disease.

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