Dubai: 24K gold price likely to go up to Dh217.4 this week
Precious metal is expected to trade between Dh203 and Dh217 in Dubai this week
US bonds prices are likely to see a short-term rally, which will support the gold prices and raise demand for the yellow metal, according to analysts.
Vijay Valecha, chief investment officer at Century Financial, expects 24K gold prices in the UAE are expected to trade between Dh203.25 and Dh217.50 during this week.
In Dubai, 24K gold price closed at Dh209.75 per gram. While 22K, 21K, and 18K retail gold prices stood at Dh197, Dh188, and Dh161per gram, respectively.
Globally, the precious metal price inched up 0.1 per cent to close at $1,730.6 an ounce on Friday.
Gold recovered strongly during last week, as the strength in yellow metal was partly due to the weakening US 10-year yield, showing signs of a reverse trend.
“A point to be noted is that the Treasury market had recorded its worst quarterly performance in more than 40 years, with investors betting on a strong US economic recovery from Covid-19. For the first quarter (QI) of 2021, the Treasury bond market lost 4.6 per cent, which is the worst performance since its 6.8 per cent loss in the third quarter of 1980. So, in the short term, a rally in bond prices seems feasible, which is likely to be beneficial for the gold price,” Valecha told Khaleej Times.
“It could be that investors are again finding value in the current depressed bond prices,” he added.
While gold dealers in India expect yellow metal demand to shine this week if prices stay around this level but Covid-19 lockdown remains a concern for the industry.
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