Monday, November 08, 2021
Khaleej Times - Dubai Gold could rally again if it breaks $1,835 barrier, say analysts
Vijay Valecha, Special to Khaleej Times November 08, 2021
Gold, which advanced last week due to a dovish tilt from the central banks, could see the next rally if the price breaks the $1,835 an ounce barrier, say analysts.
Gold rose last week despite the tapering of US bond purchases and a strong US jobs report as central banks ignored rising inflation and a tightening job market.
Spot gold last closed at $1,817.81 per ounce, up 1.47 per cent. In the UAE, 24K was trading at Dh220.25 per gram on Sunday morning, 21K at Dh206.75, 21K at Dh197.5 and 18K at Dh169.25.
Gold exchange-traded fund (ETF) holdings last week declined by a whopping 268,934 ounces to 98.028 million ounces, the lowest in a year.
“In the international spot market, gold will turn bullish on a break above $1,835 an ounce while it has support near $1,800. In the UAE, 24K is likely to trade in a range of Dh218 and Dh223 per gram this week,” added Valecha.
Ole S. Hansen, head of commodity strategy at Saxo Bank, said the market is sorely lacking the momentum to propel gold out of the range that has prevailed for many months now.
“US ten-year real yields dropping back below –1 per cent helped offset the stronger dollar and low stock market volatility. The latter is one of the reasons why ETF holdings have dropped to an 18-month low with real money investors shunning gold given the lack of a need to diversify portfolios. Focus on Friday turned to the monthly US job report which continued to show strength, thereby potentially shifting views on monetary policy once more,” said Hansen.Source:
Newsy - Today