Arun Leslie John , Special to Khaleej Times April 23, 2021
Analysts are bullish about gold prices this week, expecting US President Joe Biden to propose raising capital gain tax in the world’s largest economy which will give fillip to the precious metal.
In Dubai, it is expected that the yellow metal could gain as much as Dh5 per gram this week. On Friday, 24K retail price in Dubai stood at Dh215.25 per gram, 22K at Dh202.25, 21K at Dh193.0, and 18K at Dh165.25, according to Dubai Gold and Jewellery Group data.
Globally, the precious metal closed at $1,777.11 an ounce, down $16.72 an ounce or 0.93 per cent, giving up some initial gains that were driven by a weaker dollar and subdued US yields.
Michael Matousek, chief trader at US Global Investors, said although prices closed lower on Friday, underlying factors such as safe-haven inflows due to the pandemic, the likelihood of rising inflation, lower interest rates for longer and supportive technicals make the case for holding gold.