Gold prices edge higher to $1,122 an ounce
Dubai-UAE (Aug 19) Gold prices edged higher on Wednesday, rising by 0.4 per cent at $1,122 per ounce.
In Dubai, retail rates went up by another 25 fils per gram, with the price for 24K gold increasing from Dh134.75 to Dh135 per gram. Prices for 22K increased from Dh128.25 to Dh128.50, while 21K rose from Dh123 to Dh123.25.
Analysts have attributed the new price movement to speculations that the Federal Reserve will increase the interest rates for the first time in about ten years.
Gold fans in the UAE, however, said the price adjustment is only temporary, adding that another slump is expected to happen before the end of the year.
Karim Merchant, group CEO and managing director of Pure Gold Jewellers, said he expects gold to stay at around $900 to $1,100 this year.
For bullion prices to go down, Rolf Schneebeli, CEO of Gold Services AG, said there has to be a “massive and very quick” interest rate increase in the United States or other positive economic news in Europe or US.
“If there are drops, they will be limited to a drop to the resistance level of $1,080 to $1,100. So, the risk is very limited,” he said.