Dubai: Gold prices are expected to continue rising over the long term, analysts said, though levels could be slightly choppy later this month on the back of the outcome of the meeting of the US Federal Reserve’s board.
Experts said the overall long-term outlook for gold “remains strong” mainly due to uncertainties around the trade war between the US and China, concerns on a slowdown in global economic growth, and negative yields on bonds. Keep up with with the changes in gold rate here.
The support for gold prices came despite the 1 per cent decline it saw on Friday on the back of upbeat remarks by Jerome Powell, the chairman of the Federal Reserve, who played down recession fears and said the weaker-than-expected jobs numbers were consistent with the country’s current strong labour market.
Gold was also 2 per cent lower on Thursday.
“One move lower like what we saw on Thursday is not going to change the overall trend and what central banks are doing with interest rates, which over time is going to push gold higher,” said Bob Haberkorn, senior market strategist at RJO Futures.