Dubai: Gold dipped further this weekend due to strong employment data in the United States, but sentiment is high that the bullion will regain its strength this week.
For gold jewellery buyers, there may still be something to cheer about even if they were unable to visit the shops on Friday, when local prices dropped by more than Dh1 per gram.
The bullion inched down by about 1 per cent on Friday after the latest labour data showed that the American economy generated more jobs in July. Spot gold traded at $1,257.66 an ounce, while 24K retailed at Dh151.938 per gram.
As of Sunday, however, jewellery prices in Dubai inched back up to Dh152.50 per gram, higher by .56 fils from Friday, but still cheaper by nearly Dh1 when compared to the prevailing rates on Wednesday.
Gold had rallied to a seven-week high last week before suffering a setback on Wednesday due to a strong dollar and profit taking by investors.
Gold analysts, however, are betting on the precious metal to gain some strength this week. In a survey by Kitco, nearly half of respondents on both Wall Street and Main Street voted for gold to trade higher.
There are expectations that the US dollar could soften over the next few days. The employment figures from the US were also deemed not strong enough to convince the Federal Reserve to make some rate adjustments. Gold tends to trade lower when interest rates are increased.
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