Gold prices surge in Dubai, will it rise further?

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Gold prices surge in Dubai, will it rise further?

Dubai - Analysts are now expecting the precious metal to extend its gains

By Reuters

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Published: Sun 26 Feb 2017, 11:43 AM

Last updated: Sun 26 Feb 2017, 3:50 PM

Gold reached its highest in 3-1/2 months on Sunday as the dollar fell to a one-week low after the new US Treasury chief poured cold water on the "Trumpflation trade" that had boosted the greenback this year.
In Dubai, 24-carat gold was retailing at Dh152.25 per gram on Sunday.
Bullion traders said sentiment got a boost after gold climbed in global markets as weakness in the dollar pushed up demand for precious metals as safe-haven.
Globally, gold rose 0.61 per cent to $1,256.90 an ounce, a level last seen in November last year, and silver rose 0.99 per cent to $18.33 an ounce in New York in Friday's trade.
Analysts are now expecting the precious metal to extend its gains and reach higher to about $1,300 over the next few weeks.

US Treasury Secretary Steven Mnuchin said that any steps US President Donald Trump's administration takes on policy would probably have only limited impact this year, though he wants to see tax reform passed by August.        
 The comments suggested much work was still needed on the sweeping tax plan that Mnuchin called his main priority, and which investors had bet would stoke growth and inflation this 
"We've got a vacuum of (US domestic) policy, real (interest) rates going down, the dollar going sideways and geopolitical (jitters) around the world ... all helping gold," ICBC Standard Bank analyst Tom Kendall said.
"There is apparently a move of institutional investor money into gold and there are usually very good reasons for that."   
Spot gold was up 0.6 percent at $1,256.75 an ounce by 2:26 pm. EST (1926 GMT), having touched its highest since Nov. 11 at $1,260.10 earlier, zeroing in on the 200-day moving fourth straight week.
Gold settled up 0.55 percent at $1,258.30. Tempering gains in bullion, a poll on Friday suggested
French presidential candidate Emmanuel Macron would beat far-right leader Marine Le Pen, who has promised a referendum on European Union membership.       
Key global stock markets fell as investors scaled back bets that Trump's policies would benefit economic growth. The dollar later pared losses.                  
Holdings of the largest gold-backed exchange-traded fund, New York's SPDR Gold Trust, have risen more than 5 percent this month on geopolitical risk. 
"These dollar-denominated and perceived safe-haven precious metals have risen during a time when Wall Street has repeatedly hit new all-time highs and despite the dollar holding near its multi-year highs," said Fawad Razaqzada, technical analyst for further in the coming weeks.
"The metals' remarkable performance may suggest that investors are positioning themselves up for a major risk-off event - such as a collapse in the US stock markets." 
Silver rose 0.8 percent to $18.30 per ounce, having touched its highest in 3-1/2-months at $18.40. Silver has gained about 1.8 per cent this week in what could be its ninth straight weekly gain.
Platinum rose 1.8 per cent to $1,023.75 per ounce, after hitting its highest since early October at $1,028.60. Palladium fell 0.7 per cent to $767.25.


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