Dubai: 24K gold price seen trading between Dh208 and Dh222 this week
Rates seem to be highly indecisive with multiple factors influencing the precious metal for the coming week.
Gold prices seem to be highly indecisive with multiple factors such as the Delta variant's spread, the US central bankers meeting and the dollar's performance influencing the precious metal for the coming week.
The yellow metal managed to finish in the green last week, but the psychological level of $1,800 is turning out to be a tough nut for the bulls to crack. Gold last week closed at $1,781.77 an ounce, up 0.15 per cent. In the UAE, 24K gold price was trading at Dh215.75 per gram, 22K at Dh202.75, 21K at Dh193.25and 18K at Dh165.75.
Vijay Valecha, chief investment officer at Century Financial, said weighing on gold was the surge in the dollar index to a nine-month peak after US Federal Reserve's policy meeting minutes indicated that its officials were largely on board to start scaling back the bond purchases this year. However, the downside was limited as the minutes also stressed on the importance of the next few months' jobs reports, with solid gains needed to meet the Fed's expectations.
"Besides, concerns regarding the fast-spreading delta variant and geopolitical issues of Taliban are also limiting the metal's downside. Markets seem to be highly indecisive for now," he said.
"Going ahead, gold prices are likely to take further cues from the annual meeting of US central bankers in Jackson Hole on August 26-28. Resistance is seen near the $1,800 level and support is seen near the $1,750-$1,760 region, a break below which will open the door to the $1,720 region. In UAE, 24K gold is likely to trade in the range of Dh208 and Dh222 this week," he said.
Ipek Ozkardeskaya, senior analyst at Swissquote, said rising volatility, and a further turmoil in equity markets could trigger important gains in the yellow metal.
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