Ms Areerat says the market is now focused on inflation risks from higher oil prices, which could prevent the Fed from easing policy quickly despite weak US non-farm payroll data. Reuters
Gold prices face renewed pressure as rising oil prices and persistent tensions in the Middle East revive inflation concerns, increasing the likelihood that the US Federal Reserve may delay monetary easing despite continued demand for the precious metal.Spot gold traded in a range of US$4,356-4,434 an ounce in early trade on Thursday, after closing $42 higher at $4,391 on Aug 10. The metal briefly broke above $4,400 on Aug 11 before retreating below that level as investors took profits following its recent rally.
In Thailand, the Gold Traders Association adjusted prices twice yesterday morning, with a combined increase of 100 baht from the previous day, bringing gold bars to 69,150 baht per baht-weight.
Warut Rungkham, head of analysis at YLG Bullion & Futures Co, said the latest buying momentum was supported by continued purchases from central banks and funds.
China's central bank bought 19.9 tonnes of gold in July, extending its buying streak to 21 consecutive months. SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, increased its holdings by another 3.42 tonnes.
