Arun Leslie John , Special to Khaleej Times April 18, 2021
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.
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.