Dubai: The gold continued to take a beating from a strong US dollar on Thursday and prices are now at their lowest in more than a year, according to an analyst.
Fans of the precious metal in the UAE can expect to score more bargains at the counters, with the 24-karat (24k) gold losing Dh2 per gram in value in just two days.
According to the latest prices supplied by Dubai Gold and Jewellery Group (DGJG), which recently rolled out a campaign to offer discounts, 24K was retailing at Dh148.25 per gram as of 10.27am, down 1.3 per cent from Dh150.25 per gram on Tuesday. Around the same time last year, the same piece was trading at Dh152.25 per gram.
The bullion continued to lose its shine as the American currency regained its strength, pushing prices to touch $1,221 an ounce, the lowest in more than 12 months.
“Gold prices are continuing their downslide as the dollar continues gaining strength. Gold touched its lowest price in the last 52 weeks at $1221,” Vijay Valecha of Century Financial told Gulf News on Thursday.
“Gold and other precious metals seem to be under tremendous selling pressure and the weakness could continue for the short term till consolidation begins.”
ABN Amro had earlier predicted that the price of gold will average around $1,225 an ounce in September this year.
Gold’s recent decline has been due to heightened expectations of another round of increase in US interest rates.
Only last month, the US Federal Reserve increased the American benchmark lending rates, prompting the UAE Central Bank to adjust key rates in the country.
