A delegation from Egypt arrived in Israel on Friday hoping to revive the truce negotiations
mena2 hours ago
Gold prices were hovering around $1,900 (Dh6,9790) an ounce on Thursday (May 27) morning after it hit a four-and-a-half month high the previous day due to gains in the US dollar and bond yields.
Investors were waiting for the key US key data over the weekend for further direction.
Spot gold was trading at $1,897.61 per ounce at 9.15am UAE time, after hitting $1,912.50 on Wednesday (May 26), the highest price since January 8.
In the UAE, Dubai Gold and Jewellery Group data showed 24K trading at Dh230.0, 22K at Dh216.0, 21K at Dh206.0, and 18K at Dh176.75 per gram on Thursday morning.
Investors and traders are now awaiting the US personal consumption report due on Friday to gauge inflationary pressure. While US gross domestic product (GDP) and jobless data are also expected to be released later on Thursday.
Commodity analysts have predicted a correction in the precious metal’s price; it crossed $1,900 on Wednesday. Going forward, they see US inflation and Treasury yields playing a key role in gold’s appetite and reaching $,2,000 an ounce.
Ipek Ozkardeskaya, a senior analyst at Swissquote, said soft US yields have been giving decent support to the gold bulls, as inflation worries and perhaps the recent crypto rout drove some more capital into the yellow metal recently.
“But there are signs that a downside correction may be just around the corner, as gold may have been bought too fast in a too short period of time. The question is whether investors would pile in during the future price pullbacks targeting a further extension of gains toward the $2,000 handle?” asked Ozkardeskaya.
“US yields will perhaps play an important role in the medium-term gold appetite. Actually, we have a material rise in inflation and soft US yields. If this situation reverses, and we start seeing softer inflation combined with rising US yields on prospects of a tighter Fed policy, then gold may not find enough strength to push it above the $2,000 level,” he added.
-waheedabbas@khaleejtimes.com
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