Vijay Valecha, Special to Khaleej Times September 05, 2021
Gold prices can rise to $1,850-70 an ounce if it sustains a break above $1,830 following disappointing US jobs data and the continued weakness of the dollar, say analysts.
The precious metal edged higher on the last day of the week to close at $1,827.46 an ounce nearly one per cent. In the UAE, the Dubai Gold and Jewellery Group data showed 24K trading at Dh221.5 per gram, 22K at Dh208.0, 21K at Dh198.5 and 18K at Dh170.
The rate of new jobs being added to the US economy slowed to 235,000 for August, much below expectations of 750,000. The August data was also disappointing when compared to June and July figures of 962,000 and 1,053,000, respectively.
Richard Snow, analyst at DailyFX, said the precious metal could very likely continue the long-term uptrend but needs to clear the $1,830 mark which would likely be made possible from a continued decline in the dollar.
“However, the risk to this outlook remains that should the market anticipate a greater possibility of tapering in the build-up to the September 22 address, this could very well play out via renewed dollar strength which places downward pressure on gold prices,” he added.