Dubai: After incurring serious declines in 2015, gold seems to have regained its strength, with retail prices in Dubai soaring by nearly 5 per cent since early this month.
In the international market, the precious metal hit $1,111.26 on Tuesday, the highest since January 8, and some analysts are expecting the price to rally further and head towards the $1,200 level.
As of 10:30am, 24-carat gold was retailing at Dh133.75 per gram, up by 4.5 per cent from December 31. The price of 22K also increased to Dh126.75, while 21K and 18K traded at Dh121.25 and Dh104 per gram, respectively.
Gold’s rally came as global stocks faced another turbulence, oil prices traded below $30 per barrel and the US dollar failed to maintain its momentum on Tuesday.
The price of gold dropped by approximately 15 per cent last year, from $1,251.9 in January 30, 2015 to $1,068.3 in December 31, 2015. In dirham terms, the decline is equivalent to Dh674.50, from Dh4,598.1 to Dh3,923.6 per ounce.
The US dollar edged slightly lower, about 0.1 per cent against the yen to 118.17, as investors were cautious of the results of the Federal Reserve meeting.
Gold is expected to move higher if it manages to break above $1,113 per ounce. “Gold is currently trading within an uptrend that began back in December. A break above $1,113 can pave the way for an extension to $1,125,” said Ole Hansen, head of commodity strategy at Saxo Bank. (With reports from Reuters)
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.