Dubai: Gold jewellery buyers in the UAE can expect some price increases this week as the precious metal continues to ride on dollar weakness and stays firm amid a government shutdown in the United States.
Spot gold held steady on Monday at $1,331.57 an ounce after falling slightly for the first time in over a month last week. In the UAE, the price of 24-karat gold remained high at Dh161.25 per gram.
Analysts told Gulf News that consumers are likely to see an uptrend this week, with prices forecast to test key levels of $1,358 an ounce. Further increases are also expected on Friday, when economic figures from the US are set to be released.
“Gold would be bullish on account of the US government shutdown and mild volatility expected in the equities space,” Vijay Valecha, chief market analyst at Century Financial, told Gulf News.
“Gold prices could also turn further bullish on Friday after the US GDP numbers are out and break above $1,360 an ounce, which would be the highest level in 30 months.
As of 9.44 am, other jewellery pieces in the UAE also remained high with 22K, 21K and 18K trading at Dh151.50, Dh144.50 and Dh124 per gram, respectively.
Spot gold fell 0.5 per cent last week, the first weekly decline in six weeks, and was mostly unchanged at $1,331.57 an ounce on Monday, according to Reuters.
The US government remained closed for the second day on Monday. The shutdown took effect after legislators failed to strike a deal to resolve the status of undocumented migrants who entered the United States as children.
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