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Time to buy: 24K Dubai gold price drops to Dh207
Dubai - The 24k gold price will trade between Dh203 and Dh215 this week.
Gold prices fell more than one per cent to over a two-week low on Tuesday morning due to the strengthening of the dollar and a surge in US Treasury yields.
The precious yellow metal was trading at $1,707 an ounce at 8.45am UAE time on Tuesday, down 1.44 per cent or $25.24 an ounce.
In Dubai, 24K retail gold price fell to Dh207 on Tuesday morning, as compared to Dh209.25 on Monday, down 1.1 per cent.
Similarly, 22K dropped to Dh1945.5; 21K fell to Dh185.5 and 18K price dipped to Dh159.
Vijay Valecha, chief investment officer at Century Financial, expects the 24k gold price will trade between Dh203 and Dh215 this week.
Gold price to shine in H2
Analysts predict that the stronger US dollar and US Treasury yields will keep the gold prices under pressure in the first half of 2021 but the yellow metal could shine in the second half of the year.
"We see virtually no scope for noticeably higher prices until mid-year, though gold should be able to make significant gains in the second half of the year," Commerzbank analysts said in their latest note.
Vijay Valecha added that growing China worries and Covid-19 cases worldwide buoyed the safe-haven appeal of the dollar at gold’s expense.
Holdings in gold exchange-traded funds fell for 31 straight days, the longest losing streak in at least 10 years. Total gold held by exchange-traded funds (ETFs) fell by over 6 per cent percent this year to 100.05 million ounces, the lowest level since May 2020.
During this week, Valecha noted that investors will be eyeing China's Purchasing Managers’ Index (PMI) data and non-farm payroll (NFP) data from the US.
“Until then, the metal could continue its range play between $1,715 and $1,745, as it juggles between fluctuating Treasury yields and US Dollar price trends. However, a break below $1715, could see the metal retest key $1,700 level followed by the recent lows near $1675. Meanwhile, a move above $1745, could open doors to a $1,760 region,” Valecha added.
waheedabbas@khaleejtimes.com
KT file photo by Shihab
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