Vijay Valecha, Special to Khaleej Times November 14, 2021
Analysts are bullish on the gold prices and expect the precious metal to continue its upward trend in the coming weeks due to the persistently high inflation rate in the world’s major economies.
The yellow metal posted its most significant weekly increase in six months last week after the US published the hottest inflation in three decades. The US consumer price index (CPI) data showed inflation had increased more than forecasted in October, signalling the sixth continuous month of year-on-year inflation above five per cent. It is worth noting that the world’s three largest economies, the US, China, and Japan, released inflation data that beat analyst forecasts with the fastest price rise in decades.
Gold price closed at $1,864.53, up 0.11 per cent, on Friday.
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In the UAE, 24K was trading at Dh226.0 per gram on Sunday. While 22K, 21K and 18K were trading at Dh212.25, Dh202.5 and Dh173.5 per gram, respectively.
Rashad Hajiyev, founder and senior analyst at RM Capital Analytics, expects gold to overcome its resistance level and could touch $1,875 this week. “Towards the end of November, I expect gold to re-test $1,835 and advance above $1,900 in December,” said Hajiyev.