International gold prices fell sharply over the past week, as a stronger dollar and rising U.S. Treasury yields weighed on the precious metal.
As of Friday's close, both London spot gold and New York gold futures were trading below 3,900 U.S. dollars an ounce. Gold futures on the New York Mercantile Exchange settled at 3,886.30 U.S. dollars per ounce, edging up 0.03 percent.
For the week, the London spot gold was down 4.9 percent, the biggest weekly loss since late March, while gold futures for December delivery on the COMEX (Commodity Exchange) division of the New York Mercantile Exchange fell more than 4.6 percent.
Analysts attributed the slump to market concerns over sticky U.S. inflation, which has fueled expectations that the Federal Reserve may tighten monetary policy further, thus driving up the dollar and U.S. Treasury yields.
Since gold is a non-yielding asset, higher Treasury yields raise the opportunity cost of holding it, while a stronger dollar directly suppresses prices of dollar-denominated metals.
Gold prices post sharp weekly drop
Chinese Premier Li Qiang said in Bangkok on Saturday that "China and Thailand are as close as one family" with unique advantage for the development of bilateral relations, as reflected in the practical cooperation achievements across various fields.
Li made the statement at a meeting with Thai King Maha Vajiralongkorn in Bangkok. The Chinese premier is on a three-day official visit to Thailand through Sunday at the invitation of Thai Prime Minister Anutin Charnvirakul.
Conveying cordial greetings from Chinese President Xi Jinping to the Thai king, Li recalled that during the king's state visit to China last year, Xi held talks with him, and the two sides reached important consensus on advancing the building of a China-Thailand community with a shared future.
China appreciates that the Thai royal family has long attached great importance to and remained committed to promoting China-Thailand friendship, Li said.
He noted that the continued growth of China-Thailand economic and trade cooperation despite headwinds is particularly commendable amid the current turbulent international situation.
Li said that China stands ready to work with Thailand, in keeping with the strategic guidance of the two heads of state, to maintain close exchanges, expand cooperation in investment, technological innovation, new energy vehicles and other areas, deepen people-to-people exchanges, and promote economic and social development in both countries for the greater well-being of their peoples.
The Thai king asked Li to convey his sincere greetings and best wishes to Xi.
Recalling his state visit to China last year, the king said that the successful meeting with Xi was fruitful and remained fresh in his memory.
Premier Li's official visit to Thailand would help further consolidate the traditional friendship between Thailand and China and deepen practical cooperation between the two countries, the king said.
China, Thailand as close as one family: Chinese premier
