Vijay Valecha, Special to Khaleej Times June 13, 2021
Gold prices have good upside potential in the coming months due to worse than expected inflation data last week, say analysts.
The precious metal price closed at $1,876.87 an ounce on Friday, down 1.12 per cent or $21.21 an ounce. In the UAE, the Dubai Gold and Jewellery Group data showed 24K trading at Dh227.50 per gram, 22K at Dh213.75, 21K at Dh204.0 and 18K at Dh174.75.
US consumer prices rose solidly in May, leading to the biggest annual increase in nearly 13 years as a reopening economy boosted demand for travel-related services. The US consumer price index (CPI) increased 0.6 per cent last month after surging 0.8 per cent in April, which was the largest gain since June 2009.
Rashad Hajiyev, founder and senior analyst at RM Capital Analytics, sees gold trading between $1,855 and $1,870 one more time and standing target between $1,950 and $1,975.