Dubai gold prices hold on to gains to end the week above Dh500 levels
In the UAE prices have gained slightly, 24-karat gold is priced at Dh504.25 on Friday
Dubai: Gold clung to a small gain to end the week above the $4100 mark. US bond yields slipped and the Fed signaled it was in no rush to decide its next rate move, though fears of a Middle East escalation propped up energy prices.
In the UAE prices have gained slightly, where 24-karat gold is priced at Dh504.25 versus Dh502 the previous day.22-karat would cost you Dh467 versus the Dh464, a Dh3 difference from the previous day. 14-karat gold is inching back to Dh300 levels per gram.
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Bullion is trading at $4,189.95 of 0.4 per cent higher, however, is on track to end the week around 2% lower. Safe-haven buying, prompted by unease over France's public finances, pulled US yields lower on Thursday, with the 10-year stepping back from a 24-year peak. Higher yields tend to hurt bullion because it offers no return, and they contributed to gold's 6 per cent September slump.
External tensions remain
Oil prices climbed amid concerns that escalating tensions in the Middle East could disrupt efforts to restore energy supplies from the region. The Pentagon is considering deploying another aircraft carrier, along with 10,000 sailors and Marines, to the Persian Gulf, according to a US official. The move would bring the number of carrier strike groups in the region back to levels seen when the war with Iran began in late February.
According to Linh Tran, Market Analyst at XS.com, the near-term outlook for gold remains cautious.“In the current environment, markets are responding more strongly to the chain of effects running from oil to inflation, the Fed, yields and the U.S. dollar. Geopolitical tensions have therefore not been sufficient to lift gold unless the conflict escalates enough to trigger a wave of safe-haven demand strong enough to outweigh the pressure from interest rates”.
Spot gold rose 0.1% to $4,180.20 an ounce at 2 pm in Dubai. Silver was up 0.3% to $61.14 an ounce, after gaining 0.9% the day before. Platinum and palladium edged higher. The Bloomberg Dollar Spot Index, a gauge of the US currency, was steady after a 0.4% increase in the previous session.
