Today, the country's non-oil sector accounts for about 74 per cent of the total GDP
business2 days ago
Gold prices slipped from one-year highs on Thursday as the dollar regained some ground, while investors awaited the US non-farm payrolls report to gauge the Federal Reserve's monetary policy strategy.
Spot gold was down 0.5 per cent at $2,011.18 per ounce.
In the UAE, the 24K gold prices opened at Dh243.75 per gram while 22K, 21K and 18K were trading at Dh225.75, Dh218.5 and Dh187.25 per gram, respectively.
"This is a market due for some technical correction because the rally was very sharp," said Ajay Kedia, director at Kedia Commodities in Mumbai.
Investors now await Friday's non-farm payrolls report for March.
This week, the precious metal broke beyond the $2,000 per ounce barrier, and it has been holding this level rather effectively. But it is also vital to note that most of the yellow metal's rise is due to weakness in the dollar index, which is predicted to fall as the Fed eases off its ultra-hawkish monetary policy. Yet, with oil prices in the upper 80s range, the Fed is likely to continue raising interest rates if they are serious about managing inflation.
Naeem Aslam, chief investment officer, Zaye Capital Markets, said it is commonly assumed that the present surge in gold prices is mostly the result of speculators seeking a safe-haven asset class.
“After all, price stability is more essential to them, and they have yet to show a willingness to make the trade-off with anything else,” he said, adding that at these times of heightened geopolitical tensions and their daily escalation, traders and investors more inclined to choose less risky assets.
“It is also feasible that we may see additional gains for other gold alternatives, such as Bitcoin, which has performed pretty well in recent weeks despite the regulatory crackdown by US authorities on crypto exchanges.”
He advised that traders should keep an eye on gold and bitcoin prices in the next few months, as both of these asset classes might witness major price rises, particularly if global tensions do not lessen.
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