Dubai: Gold rises to Dh224.5, could touch Dh227 this week

Photo: Reuters

Dubai - Precious yellow metal’s prices rise to a 3-month high.

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By Waheed Abbas

Published: Mon 17 May 2021, 10:56 AM

Gold prices jumped to a three-month high at the opening of the trade on Monday due to a dip in the dollar and concerns about global inflation.

Spot gold price jumped $10.2 an ounce or 0.55 per cent to $1,853.8 per ounce by 9.20am UAE time. Gold prices rebounded from mid-week lows of $1,808 to end the week modestly higher at $1,843.

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In the UAE, gold prices gained more than one dirham per gram on Monday.

Dubai Gold and Jewellery Group data showed 24K retail gold price rising Dh1.25 to Dh224.5 per gram from its previous close of Dh223.25. Meanwhile, the price of other variants of the precious metals also increased between Dh1 and Dh1.25 per gram.

Data showed that 22K gold retail price stood at Dh210.75, 21K at Dh201.25, and 18K at Dh172.5 per gram on Monday morning.

Vijay Valecha, chief investment officer at Century Financial, said a bigger-than-expected rise in consumer prices and a drop in weekly jobless claims to a 14-month low weighed on the metal, as it intensified concerns over rising inflation and prospects of higher interest rates.

“However, US retail sales data release came in below market forecasts, which dragged the dollar and supported the metal. Although the metal is considered as a hedge against inflation, the likelihood of the US Federal Reserve being forced to lift interest rates to cool the economy has capped the bullion’s upside,” said Valecha.

He said all eyes would be on next week’s barrage of Fed member speeches and global Purchasing Managers' Index (PMI) data.

“It’ll be interesting to see if bulls are able to capitalise on the move or the metal continues with its struggle to break through the critical 200-day simple moving average (SMA) barrier, currently near the $1,849-50 region. In the UAE, 24k gold prices are likely to trade between Dh218 and Dh227 for the week ahead,” Valecha added.

waheedabbas@khaleejtimes.com

Waheed Abbas

Published: Mon 17 May 2021, 10:56 AM

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