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Latest UAE gold rates: Analysts expect volatile week for precious metal

Rates could go up or down towards the end of the trading week

High earning investment
Image Credit: Atiq-ur-Rehman/Gulf News
For many consumers, gold jewellery is a great store of wealth.

Dubai: The precious metal regained some strength on Monday amid trade war fears, but some analysts are expecting that this week could again be volatile for gold and see prices fluctuate.

The bullion is more likely to trade within a range of $1,290 to $1,360 an ounce over the next few days and, sometime this week, the precious metal could see a spike in demand. Market watchers could definitely see some price movement on Thursday and Friday.

For jewellery buyers in the UAE who want to cash in when the markets turn in their favour, one of the factors to keep an eye on are the latest employment statistics in the United States that are due to be released on March 9.

The markets will also be on the lookout for statements and comments from the European Central Bank during a press conference on March 8, as well as the election results in Italy.

So far, the price of 24K in the UAE stood at Dh160.75 per gram as of 10am, while 22K traded at Dh151 per gram. Today’s buyers of 21K and 18K gold jewellery can expect to pay Dh144 and Dh123.50 per gram, respectively.

 Spot gold was up 0.3 per cent at $1,326.41 an ounce at 0414 GMT, according to Reuters. The price had hit $1,327.03 in the earlier session, the highest level reached since February 27.

Gold had a volatile time last week when the new head of the US Federal Reserve Jerome Powell commented that interest rates will still be increased on a gradual basis this year. The statement worked in favour of the US dollar and sent gold prices falling below $1,310 levels.

“Gold could see yet another volatile week as we await the ECB press conference and the non-farm [employment] numbers this week. Gold should trade within a range of $1,290 to $1,360,” Vijay Valecha, chief market analyst at Century Financial, told Gulf News.

“[Powell’s latest comments] had injected temporary strength in the dollar [and] gold prices came below $1,310 levels to touch February lows.”

The bullion later gained support when US President Donald Trump announced tariffs on steel and aluminium imports.

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