Dubai: Gold prices at a 7-week high; on course to $1,800?

Gold prices firmed up in Dubai and worldwide at the opening of the global markets on Monday morning, buoyed by a weaker dollar and falling US Treasury yields. (Check out the latest gold/forex rates in UAE)

Spot gold price was up slightly 0.8 per cent or $13.74 an ounce to $1,779.38 at 9.45am UAE time on Monday morning and was trading at a seven-week high.

In Dubai, prices were stable with 24K retail gold price at Dh215.25 per gram; 22K at Dh202.25; 21K at Dh193.0 and 18K at Dh163.50.

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“Gold prices have started the week on a positive note, and we see traders picking up momentum where they left off last week,” said Naeem Aslam, chief market analyst at AVATrade.

Last Friday, gold prices recorded the best week in nearly four months, and a lot of those moves were mainly because of the US Federal Reserve's dovish tone.

“If we look at the US Treasury yields, we see the same theme that we can see for the dollar index, which is a move to the downside. Given the fact that gold prices are trading above the $1,750 per ounce price level, if the weakness continues in the dollar index, we could easily see the gold price toping above the $1,800 price level,” he told Khaleej Times.

Michael McCarthy, chief market strategist at CMC Markets, also predicted a positive short-term outlook for the precious yellow metal amid weaker greenback and easing of interest rate, despite better overall macroeconomic outlook.

-waheedabbas@khaleejtimes.com