Dubai gold prices rise as dollar slips

Dubai gold prices rise as dollar slips

Bengaluru - US gold futures rose 0.3 percent to $1,208.0 an ounce.



By Reuters

Published: Fri 7 Sep 2018, 8:52 AM

Last updated: Fri 7 Sep 2018, 11:00 AM

Gold extended gains on Friday as the dollar fell against the yen after a report suggested that US President Donald Trump would next take up trade issues with Japan, while investors feared a new round of Sino-US tariffs could come at any moment.
Spot gold was up 0.2 percent at $1,202.14 as of 0219 GMT, after it hit a near one-week high on Thursday at $1,206.98, and headed for a third straight session of gains.
US gold futures rose 0.3 percent to $1,208.0 an ounce.
Meanwhile, 24k gold is priced at Dh145.75 and 22k can be bought at Dh137 in Dubai.
The dollar declined further against the yen following a CNBC television report on Thursday that Trump told a Wall Street Journal columnist he might take on trade issues with Japan.
"The stronger yen versus dollar is leading to some buying in gold ... The recent low of around $1,160 in August is really the bottom in gold for now," said Yuichi Ikemizu, Tokyo branch manager, ICBC Standard Bank.
"The next moves will mostly depend on the employment data tonight and the September Federal Reserve meeting. But it mostly looks like gold is slowly coming up and the dollar is coming off as gold is too oversold and the dollar has been overbought. 
Another big worry for investors was the end of a public consultation period over trade, after which Trump could impose tariffs on $200 billion more in Chinese imports.
China's commerce ministry warned that the country would retaliate against any new tariff measures..
Meanwhile, markets will be closely watching a US employment report due later in the day for cues on the pace of interest rate hikes by the Fed.
The payrolls report is expected to show a robust rise of 191,000, in part as July was temporarily depressed by the closure of the Toys R Us chain that month.
Current economic conditions are "as good as it gets" for the US central bank, New York Federal Reserve bank President John Williams said on Thursday, with steady inflation and low unemployment allowing the Fed to continue gradually raising rates.
"Gold faces a quick correction if US jobs data, inflation in particular comes in near or above target. The Fed has hiked two times in 2018 and is on course to lift rates twice more," said Alfonso Esparza, a senior currency analyst at OANDA.
Gold has tumbled more than 12 percent from a peak of $1,365.23 in April. Present levels have recently invoked a lot of physical buying in Asia, traders and analysts said.
Among other precious metals, spot silver rose 0.5 percent to $14.19 per ounce.
Platinum was steady at $791.40, while palladium fell 0.3 percent to $975.
 


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