Gold gets cheaper in the UAE: Prices are dropping to buyable levels
Shoppers are getting ready to stock up more gold this February as prices drop from highs
Gold prices have been falling in the UAE and elsewhere in the world, but will it slip further in the days to come or is now the right time to buy?
Prices have been hovering at $1,800 per ounce in the current and previous sessions, and the cost of 24-karat gold was currently trading between Dh217 per gram and Dh219 per gram. But where will it go from here?
In the week ahead, Dubai-based commodity analysts see the price of gold ranging between $1,780 and $1,820 per ounce, with the cost of 24-karat gold trading between Dh214 and Dh220. Check the latest gold rates here.
What's driving the price now?
Gold had gained earlier this week as expectations for aggressive global central bank tightening eased after the Reserve Bank of Australia said they are in no rush to raise rates and as some traders doubted the US would kick off tightening with a half-point increase.
However, selling pressure (which pushes prices lower) has returned, as gold price is currently off the multi-day highs but holds above $1,800. This is ahead of what analysts have marked ‘Super Thursday’, with investors eying the policy announcements from the Bank of England (BoE) and the European Central Bank (ECB).
Will gold get cheaper or costlier?
Analysts further opine how an agreesive or hawkish surprise stance from both the BoE and the ECB, in the face of soaring inflation, will likely add to the renewed weakness in the non-interest-bearing bullion.
Further, the existing risk-aversion seen among investors in markets could deepen on the such hawkish central bank outcomes, which could in turn keep the US dollar afloat at gold’s expense.
In any case, analysts agree that the gold price stands to lose ground in the week ahead, although the losses may be limited in anticipation of certain economic data that is expected to be released in the world's top economy on Friday.