Vijay Valecha, Special to Khaleej Times October 03, 2021
Gold price is expected to stay below $1,800 an ounce level in the near term as US Fed intends to complete the tapering process by the middle of next year which should help the dollar stay firm and yellow metal under pressure, say commodity analysts.
The Dubai Gold and Jewellery Group data showed 24K trading at Dh213.25 per gram on Sunday. Among the other variants of the precious metal, 22K was trading at Dh200.50, 21K at Dh191.25 and 18K at Dh164.0.
The yellow metal prices rebounded from the lows of $1,722 to end the week near $1,761 as a lacklustre US jobs report on Thursday resulted in a pullback in US Treasury yields and dollar.
Naeem Aslam, chief market analyst at AVA Trade, said US unemployment claims data came in lower than expected last week. As a result, the dollar index fell and gold prices increased by nearly two per cent.
“Investors should keep in mind, however, that expectations that the Fed will soon begin winding down quantitative easing are acting as a barrier to any kind of upward movement for the precious metal,” said Aslam.Source: