Dubai: The precious metal inched up slightly on Monday as stock markets and oil prices tumbled after output talks between oil producers in Doha failed to reach a consensus.
Spot gold peaked at $1,239.30 an ounce on Asia trade before settling at $1,236.20 by 0639 GMT, posting a 0.2 per cent gain.
Retail gold prices in Dubai increased by as much as .25 fils per gram, with 24-carat gold trading at Dh149.75 as of 11.40am on Sunday. The price of 22-carat gold was fixed at Dh140.75, while 21K and 18K traded at Dh134.25 and Dh115 per gram, respectively.
Analysts, however, are still betting on the bullion to post some declines this week. Factors that could impact the precious metal in the coming days include the US dollar and economic situation in China, according to Rolf Schneebeli, CEO of Gold Services AG.
“There are some contradictory factors [to watch out, though]. On the one hand side, there is some feeling that the economic situation in China is improving and the slump is bottoming out. This would be positive for the outlook,” said Schneebeli.
“On the other side, the market is again looking at the dollar, meaning that when the dollar is strengthening, the gold price is dropping in dollar terms. In addition, the technical indicators for the gold price look quite vulnerable right now.”
“So, overall, for [this week], there is a slightly higher likelihood for lower prices,” Schneebeli told Gulf News.
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