Dubai: Gold’s retail prices in Dubai inched higher on Monday as investors continued to seek refuge in safe-haven assets amid the current economic uncertainty.
The precious metal has so far gained about 2.5 per cent in value this year. As of 6pm, 24-carat gold was trading at Dh131.25, up by Dh3.25 from December 31st and .25 fils from early Monday.
Spot gold posted a 0.2 per cent increase at $1,090.93 an ounce at 1303 GMT. “Right now we are seeing consolidation, but as we shift perspective towards February and March, this swing to higher prices will go on,” LBBW analyst Thorsten Proettel was quoted by Reuters as saying.
Other analysts had earlier forecast further declines this year, citing that the metal will likely hit $1,050 per ounce by the end of March 2016 due to higher US dollar, improved investor sentiment and higher US yields.
The precious metal took a beating late last year on expectations that the US Federal Reserve would increase the interest rates before the end of 2015. However, gold started the year on a strong note due to the turbulence in Chinese markets, coupled with the rising tensions in the Middle East and yuan devaluation. The metal later retracted, losing about 2 per cent in four consecutive days last week.
The yellow metal remains volatile and is still poised for further declines, according to Karim Merchant, CEO of Pure Gold Jewellers in Dubai.
“Gold price continues to be volatile since the beginning of the year. We have seen it rise in the beginning of the month and then fall [last week] and up again. The price rise shows investor faith in gold as a safe haven during political and economic uncertainty,” Merchant told Gulf News earlier.
Gold Rate: To keep up to date with gold prices, go to our gold rate page.
Currency Rate: To keep up to date with latest exchange rates, go to our currencies page.