Dubai: Jewellery lovers who hit the shops today may find some good bargains, with retail rates registering a nearly Dh5 per gram decline compared to previous weeks.
The relatively cheaper prices, however, may not stick around for long, with the forecast for the days ahead now favouring the precious metal.
After breaching the average price level weeks earlier, 24K gold traded at Dh157.25 per gram on Sunday, down by Dh4.50 from September 5, when the bullion rallied to hit more than $1,330 an ounce.
Other jewellery pieces also traded lower, with 22K selling for Dh147.50 per gram, 21K at 140.75 per gram and 18K at Dh120.75.
The metal had been quite out of reach for many shoppers on a budget in UAE lately. Spot gold price broke above the $1,300 level on August 28, largely due to the North Korean missile test that triggered safe-haven buying. However, the bullion failed to keep the momentum.
Ole Hansen of Saxo Bank had said gold was under pressure sometime last week , especially following Wednesday’s Federal Open Market Committee (FOMC) meeting that gave the greenback a boost.
“Precious metals are currently struggling following weeks of speculative buying that now needs to be adjusted,” Hansen said on a note last Thursday.
Spot gold stood at $1,295.71 an ounce on Friday, according to Reuters, slightly up from a four-week low of $1,287.61 an ounce on Thursday, but still below the previous peak prices.
Looking ahead to the week, analysts surveyed by Kitco, said they expect the precious metal to gain some strength.
The majority of analysts and traders (50 per cent) from the Wall Street said the market is in for a price appreciation. Respondents from the Main Street, in turn, changed their bearish stance, with 45 per cent betting on gold prices to move higher over the next few days.
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.