Dubai: Gold prices to rise in coming months, say analysts

Dubai - The precious metal closed at $1,876.87 an ounce on Friday.

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By Waheed Abbas

Published: Sun 13 Jun 2021, 6:32 AM

Last updated: Sun 13 Jun 2021, 6:55 AM

Gold prices have good upside potential in the coming months due to worse than expected inflation data last week, say analysts.

The precious metal price closed at $1,876.87 an ounce on Friday, down 1.12 per cent or $21.21 an ounce. In the UAE, the Dubai Gold and Jewellery Group data showed 24K trading at Dh227.50 per gram, 22K at Dh213.75, 21K at Dh204.0 and 18K at Dh174.75.

US consumer prices rose solidly in May, leading to the biggest annual increase in nearly 13 years as a reopening economy boosted demand for travel-related services. The US consumer price index (CPI) increased 0.6 per cent last month after surging 0.8 per cent in April, which was the largest gain since June 2009.

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Vijay Valecha, chief investment officer at Century Financial, said gold saw mixed sessions last week with the CPI data coming in much worse than expected and the European Central Bank having no change in policy.

“Gold is viewed as a hedge against inflation and since inflation numbers across the globe are coming much higher than expected, the yellow metal has good upside in the coming months,” he said.

“Gold has a major support between $1,845 and $1,850 region and has a clear resistance at the $1,910 mark,” he said.

In the UAE, 24K gold prices have dropped to Dh227.5 and have a major support at Dh224 and should see a bounce from those levels in the coming week, added Valecha.

Rashad Hajiyev, founder and senior analyst at RM Capital Analytics, sees gold trading between $1,855 and $1,870 one more time and standing target between $1,950 and $1,975.

-waheedabbas@khaleejtimes.com

KT file photo by Ryan Lim
Waheed Abbas

Published: Sun 13 Jun 2021, 6:32 AM

Last updated: Sun 13 Jun 2021, 6:55 AM

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