Gold prices are expected to drop near 9 month lows seen last week.
Dubai: Gold prices are expected to drop near 9 month lows, critics are at the moment evaluating how the price will probably fall even more this week after a momentary pause. The price of 24 karat gold was at 211 Dh / gram on Monday. Meantime, the price of 22 karat gold fell to 198.25 Dh / gram, 21 karat to 189.25 Dh / gram and 18 karat to 162 Dh / gram, in the UAE.
Since July 6, the Dubai Gold Rate has been lower than Dh200 a gram, while on July 2 it had been quoted at about Dh206. On Friday Gold reached a weekly loss, stroking its shortest since September a few sessions prior. Globally, the spot price of gold held on at $1,741.84 per ounce on Monday.
Short pause prior to drop
US gold futures – suggestive of nearby price trends – is seen at around $1,730 this week, but analysts evaluate the level won’t get to before a hold in prices.
Meanwhile gold prices remain lower than $1,753/oz it seems a move down to $1,720 is expected. Even though there is some support around $1,730 … given the bearish trend overall, any upside is likely to be a retracement, at best.
Gold prices are currently hurt by the US dollar’s rise and bets for sharp interest rate ramble gaining traction after healthy data out of the world’s largest economy, the US. The dollar climbed back towards its highest level in about 20 years hit on Friday.