Dubai: After hitting $1,300 an ounce last week, gold inched down on Monday as the US dollar started to regain some strength.
As of 11.30am, 24 carat was trading in Dubai at Dh155.75 per gram, down .5 per cent from a week earlier. In Asia trade, spot gold slipped to $1,285.16 an ounce, according to Reuters.
The greenback climbed against the Japanese yen on Monday following Friday’s decline, which was triggered by weak employment data in the United States. A weaker US dollar had been a major factor behind the bullion’s recent rally.
Analysts, however, are banking on the bullion to regain positive momentum. In ABN Amro’s latest calculations, gold is forecast to climb to $1,300 an ounce next month and $1,370 an ounce by December this year.
Georgette Boele, co-ordinator for foreign exchange and precious metals strategy at ABN Amro, said they expect gold and other precious metals to sustain their strength this year because they remain an attractive investment.
“Since 18 February of this year, we have had a strong conviction for higher precious metal prices. Prices have rallied sharply, some faster than we had anticipated,” Boele wrote in her latest analysis.
“We think that the positive momentum is here to stay and that prices will rally further during the course of this year and next year. However, on an intra-day and intra-week timeframe, price volatility could happen.”
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