gold rate

Most traders, analysts upbeat about gold this week

For first time in nine years, nearly everyone shares the same forecast

10:57 November 12, 2017
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Dubai: Gold jewellery rates in the UAE are set to increase this week, analysts said in the latest survey.

A new survey that seeks to gauge the sentiment of the market showed that, for the first time in almost a decade, nearly nine out of ten industry analysts and traders agree on one thing: the bullion will shine this week, and this means less bargains for buyers in UAE.

A shopper browses gold ornaments at a jewellery store in Petaling Jaya, Malaysia

Gold is widely popular in the UAE and so far, yellow metal fans have had the opportunity to take home jewellery for a more affordable price.

The precious metal remained relatively low on early Sunday, with the 24-karat gold trading for Dh154.50 per gram in the UAE, down by Dh1 per gram from Thursday. The price of 22K stood at Dh144.50, while 21K and 18K traded at Dh138 and Dh118.25, respectively.

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But things could change soon, with market experts seeing a reversal in prices.

In a survey conducted by Kitco, 86 per cent of the respondents from Wall Street said they are bullish on gold, while 64 per cent of those in the Main Street are betting on price increases this week.

It is said to be the first time that survey respondents have been most upbeat about gold since the study started nearly ten years ago.

Analysts said there’s a possibility that prices could trace higher back to more than $1,300 an ounce.

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“Gold is likely to attract some renewed attention on a break back above $1,290 an ounce which could clear a path back towards the October high at $1,306 an ounce,” said Ole Hansen, chief of commodity strategy at Saxo Bank.

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He said gold will continue to take its cue from developments across other markets, not least the dollar and interest rates.

“Geopolitical risks related to North Korea have faded during  [Donald] Trump’s four-nation visit to Asia, while at home the Republican’s tax reform may struggle to garner the majorities needed, not least in the Senate.”

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