Monday, June 01, 2020

Gold price drops slightly amid concerns about US economy

Apr 02. 2020
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By The Nation

Gold price dropped by Bt50 per baht weight in morning trade on Thursday (April 2), the Gold Traders Association reported.

As of 9.25am, buying price of a gold bar was Bt24,650 per baht weight and selling price Bt24,850, while buying price of gold ornaments was Bt24,210.52 per baht weight and selling price Bt25,350.

At the close on Wednesday (April 1), the buying price of a gold bar was Bt24,700 and selling price Bt24,900, while the buying price of gold ornaments was Bt24,256 and selling price Bt25,400.

Gold contracts in COMEX futures to be delivered in April dropped by US$5.20, closing at $1,591.40 per ounce on Wednesday (April 1) amid uncertainty among investors following the Covid-19 pandemic in the US.

US President Donald Trump has warned Americans to prepare themselves for a tough two weeks, while the death toll in the US may rise between 100,000 and 240,000.

The US has the highest number of Covid-19 patients in the world crossing 200,000 while the death toll crossed 4,000.

Goldman Sachs expected that the US gross domestic product would contract by 9 per cent in the first quarter of this year and 34 per cent in the second quarter which would be the greatest fall since the end of World War II.

“However, we expect that the US economy would rebound by 19 per cent in the third quarter of this year, which would be the greatest rise in history,” a Goldman Sachs executive said.

A strategist at YLG Bullion and Futures advised investors to take profit from short-term volatility at the resistance line between US$1,594 and $1,608 per ounce and buying gold at the support line at between $1,561 and $1,547 per ounce.

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