Dubai: Gold remained listless on Thursday after failing to gain some support from currency movements, with retail prices in Dubai dropping by 1.28 per cent from Sunday.
The US dollar strengthened on the same day, climbing 0.5 per cent against the Japanese yen, after losing some steam a day earlier.
In Asia trade, spot gold dropped 0.5 per cent at $1,271.40 an ounce by 0641 GMT, after climbing off two-week lows overnight, according to Reuters.
As of 12 noon, 24 carat was retailing in Dubai at Dh154 per gram, down by .25 fils from Wednesday’s close of Dh154.25 and by Dh2 from Sunday’s closing rate. Other gold pieces traded lower as well, with 22K retailing at Dh144.75, 21K at Dh138.25 and Dh18K at Dh118.50.
The precious metal, however, is forecast to regain some strength this year. ABN Amro, in its latest analysis, said gold could climb to $1,300 an ounce next month and $1,370 an ounce by December.
The first three months of the year witnessed a record gold rush, with investors snapping up bars, coins and other pieces worth nearly 1,290 tonnes.
The latest report from the World Gold Council showed that gold demand went up by 21 per cent in the first quarter compared with a year earlier, the fastest pace on record.
Between January and March 2016, investors acquired 253.9 tonnes of gold bars and coins, up 1 per cent from the first quarter of last year. Demand for official coins alone recorded the highest increase at 17 per cent, while medals/imitation coins plummeted by 24 per cent.
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