Dubai: With gold prices expected to record a fresh new weekly low again this week, buyers are expected to take advantage of the comparatively low prices as the yellow metal is set to get pricier from here on out, analysts reiterate.
In the UAE, the cost of 24-karat gold dropped further to Dh202 per gram on Monday. Meanwhile, the price of 22-karat gold fell to Dh189.75 per gram, 21-karat to Dh181 and 18-karat to Dh155.25 in the UAE. Check the latest gold rates here.
The growing anticipation of another oversized US interest rate hike kept the bullion on track for a weekly decline. Prices were down 1.6 per cent so far for the week. US gold futures - indicative of near-ter prices - inched 0.1 per cent down at $1,666.80.
"Gold is stuck between not seeing a pivot any time soon but there is a light at the end of the tunnel here in the sense that the Fed might pause," said Stephen Innes, managing partner at SPI Asset Management.
Gold to go higher in the medium term, so buy soon
"In medium term there's greater chance for gold to go higher than lower. We're going to see negative outcomes in the economies globally, which could eventually tip the scales in favour of rate cuts."
Traders are largely expecting a fourth straight 75-basis-point increase at the close of the US' November 1-2 meeting.
Although traditionally seen as a hedge against inflation and economic turmoil, interest rate hikes to control soaring prices have reduced bullion's appeal since it yields no interest.
According to Reuters technical analyst Wang Tao, spot gold looks neutral in a range of $1,660 to $1,674 per ounce, and an escape could suggest a direction.
Meanwhile, spot price of silver rose 0.6 per cent to $18.98 per ounce and was set for its biggest weekly decline since August.