Time to buy: Dubai gold prices set to rise further this week

Gold prices are likely to shine further and extend the rally this week due to the weakening of the US dollar and could touch $1,830 an ounce, according to analysts.

Gold rates rose 2.37 per cent or $41.23 an ounce to $1,777.29 on Friday.

In Dubai, retail gold prices also made a smart gain of around Dh5 per gram on Friday, as compared to the previous day.

Dubai Gold and Jewellery Group data showed that 24K price stood at Dh215.25 per gram, 22K at Dh202.25, 21K at Dh193.0 and 18K at Dh165.25 on Sunday morning.

“Now, the bullion seems all set to extend the momentum further towards reclaiming the $1,800 mark, which coincides with the 100-day moving average at $1,804. A break above $1,804 could see the metal rise to $1,830 per ounce level. For the week ahead, the metal is expected to trade between $1,745 to $1,830,” said Arun Leslie John, chief market analyst at Century Financial.

In the UAE, 24K retail gold price is expected to trade between Dh210 to Dh221.5 per gram, said John.

“A pullback in the US Treasury bond yields is undermining the dollar and providing an additional boost to the dollar-denominated metal,” he added.

Carlo Alberto De Casa, chief analyst at ActivTrades, attributed the rally to gold prices mostly to falling US Treasury yields and weakening of the greenback.

Naeem Aslam, chief market analyst at AVATrade, also said that the gold price would continue to move higher for some time after it cleared a significant obstacle level on Friday and the precious yellow metal is not yet at the overbought level.

“Most of these gains in gold are not primarily because of the soft economic numbers. In fact, on Thursday, we had very decent economic data out of the US. The reason that we’re experiencing an upward trend in the gold price is that bears punished the gold price too much, thinking that the US Federal Reserve will take too aggressive action with respect to their monetary policy as economic recovery picks up pace,” Aslam explained.

waheedabbas@khaleejtimes.com