Dubai: Gold is expected to post higher prices this week after weak employment data in the United States dampened expectations of an interest rate increase from the Federal Reserve.
The precious metal ended Friday’s session on a positive note, rising by two per cent to $1,137 an ounce, fueling retail prices in Dubai to go up by as much as Dh2.75 per gram.
As of Sunday morning, 24-carat gold was retailing at Dh137, up from Dh134.25 Thursday. The price for 22K was pegged at Dh130.25, while 21K and 18K stood at Dh124.75 and Dh108, respectively.
In Kitco’s latest weekly survey, the majority or 70 per cent of gold market experts, including bullion dealers, investment banks, futures traders and technical-chart analysts, said the precious metal is expected to post more gains this week, while 10 per cent anticipate a downtrend and 20 per cent remain neutral.
“Many analysts are bullish on gold [this week] as the weaker-than-expected data [from the US] has drastically shifted expectations for when the Federal Reserve will raise interest rates,” Kitco said in a report.
Job creation in the United States slowed down last month, with the economy adding only 142,000 jobs in September, much lower than the 304,000 forecast.
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