Vijay Valecha, Special to Khaleej Times April 11, 2021
Gold prices in the UAE and worldwide are expected to consolidate this week and likely to trade in the range between Dh204 and Dh215.5 per gram in Dubai, say analysts.
In the UAE, 24K gold price is expected to trade in the range of Dh204.5 to Dh215.5 this week. On Friday, 24K retail gold price closed at Dh211.25 per gram in Dubai, while 22K, 21K, and 18K closed at Dh108.50, Dh189.25, and Dh162.25 per gram, respectively, on Friday.
Gold had a fairly decent last week on the back of weaker US yields and the dollar.
However, the yellow metal climbed to as high as $1,759 in the middle of last week, gave back part of its gains to end the week 0.8 per cent higher at $1,744. The gains in the metal were supported by a retreat in US Treasury yields and dollar amid dovish remarks from the Federal Reserve.
The US Federal Reserve Chairman Jerome Powell on Thursday played down the risk that inflation could get out of control, a day after the Fed’s minutes of March meeting showed officials were united on the need to see more progress on the recovery before scaling back bond-buying.
Tai Wong, head of base and precious metal derivatives at Bank of Montreal, said although, in general, the gold market is bullish in the short term, with expectations of a break of $1,760 to $1,765, caution about the new 10- and 30-year Treasury auctions is supporting yields and limiting the advance of gold.
He said US treasury yields are driving most markets right now, directly impacting the dollar and equities and all the three impacting gold.
Valecha said the key factors that would influence the yellow metal this week will be the US treasury yields and dollar which would, in turn, be influenced by the two treasury auctions and the Key US CPI data.