Dubai: Retail prices of the precious metal in Dubai have edged back up, but analysts are expecting gold’s weakness to resume as stock markets around the world have recovered and a global panic failed to ensue.
As of Thursday morning, 24-carat gold in Dubai went up slightly from Dh135.75 to Dh136.25 per gram. The price for 22-carat gold gained a few fils more, rising from Dh 129.25 to Dh129.50, while 21 carat rose from Dh123.75 to Dh124.25.
A Reuters report described the recent price movement as within “tight range”, with the spot price rising 0.2 per cent at $1,127.35 an ounce by 0259 GMT. The bullion dropped 1.2 per cent on Wednesday, its steepest decline since July 20.
Overall, the latest gold price is still five per cent higher compared to last month, when the global rate fell to a 5-1/2 year low at $1,077 an ounce.
The UAE dirham also rose .20 per cent against the euro and 0.10 per cent versus the Philippine peso. The UAE currency, however, dropped 0.01 versus the rupee.
According to ABN Amro’s research note, gold failed to rally further because there was no “global panic” or “severe systemic crisis” reflected across all markets.
“With financial markets now attaching a lower probability to a Fed rate hike this year, the market impact will be more substantial if the Fed decides to hike as we still expect. Then, financial markets will adjust upwards their interest rate hiking expectations for this year and next year,” the bank said.
“This will spur the US dollar and result in lower gold and other precious metal prices.”
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