Dubai: 24K gold price set to rise to Dh230 this week

Waheed Abbas/Dubai
Filed on May 23, 2021 | Last updated on May 23, 2021 at 08.54 am

Globally, the precious yellow metal can hit $1,930, as inflows into ETFs continue

The rally in gold prices is expected to continue this week and the precious metal could hit $1,930 an ounce as inflows into gold exchange-traded funds (ETFs) is likely to continue.

Spot gold price last closed at $1,881.96 an ounce, up 0.42 per cent or $7.86 an ounce. The precious metal has gained five per cent, or $90 an ounce in the past 30 days.

Dubai Gold and Jewellery Group data showed 24K retail price last closed at Dh227.25 per gram.

Vijay Valecha, the chief investment officer at Century Financial, had predicted that 24K gold price in Dubai rising to Dh230 per gram in the next few days.

“For now, the precious yellow metal seems to have ignored talks of US Federal Reserve tapering of bond purchases. Gold has closed above the 200-day moving average, a key technical level critical for both the bulls and bears, indicating bullishness. In a sign of increasing demand, gold ETFs have witnessed inflows during the past three weeks,” added Valecha.

Gold is strongly inversely correlated with US 10-year yields at this point in time.

“Any upsurge in yields can upset the gold applecart. Gold is expected to trend upwards for the coming week and could target $1,900 to $1,930 per ounce in the international spot market,” he said.

Banking giant HSBC said gold may trudge higher, as the negative impact of the US Federal Reserve minutes wears off. “That said, gold faces quite stiff resistance at $1,900 an ounce,” it said.

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