Vijay Valecha, Special to Khaleej Times May 9, 2021
Gold prices are expected to touch $1,860 an ounce this week after the precious yellow metal registered its best week in six months, according to commodity analysts.
The metal closed at $1,831.42 per ounce on Friday, gaining 3.5 per cent last week.
In the UAE, 24K retail price last closed at Dh221.75 per gram, 22K at Dh208.25, 21K at Dh198.75, and Dh18K at Dh170.5.
The metal’s staggering last week rally is attributed to disappointing US economic data, primarily the jobs data. The US non-farm payroll report showed that the economy added only 266,000 jobs in April against initial expectations of 978,000.
Besides, April’s reading was also revised down to 770,000 from 916,000 jobs that were reported earlier. The data failed to allay concerns surrounding early US Federal Reserve tapering talks and reaffirmed market expectations that the Central bank will keep interest rates near zero levels for a longer period.
The Fed has also recently reiterated its accommodative monetary policy stance.
Daniel Moss, an analyst for DailyFX, said he would expect the market to move upwards after it reopens on Monday. “But it won’t persist over a long period of time,” he added.