Investors bullish on gold; retail prices up Dh2 per gram

Dubai (Sept 20)  Gold appears to be back on a winning streak following a Federal Reserve decision not to increase interest rates, with retail prices rising by more than Dh2 per gram over the weekend.

As of Sunday morning, 24-carat gold in Dubai was retailing at Dh137 per gram, up from Dh134.75 on Thursday, September 17, or before the Fed announced its decision. The price for 22K went up from Dh128.25 to Dh 130.25, while 21K rose from Dh123 to Dh125.

The bullion climbed to $1,141.97 an ounce on the London Bullion Market on Friday, hitting a two-week high. “Gold was definitely saved by the Fed as no raise in interest rates maintained its appeal of alternative asset,” Jonathan Sudaria, dealer at London Capital Group, was quoted in an AFP report as saying.

The precious metal has seen its value falling recently as expectations were high that the US Federal Reserve might change the interest rates. There were speculations that prices would test the $800 an ounce level.

The Fed’s decision has apparently worked in gold’s favour and restored investor sentiment in the gold market.  According to the latest survey by Kitco, most retail investors and market professionals are betting on prices to go higher this week.

Among the 172 respondents polled for the survey, 57 per cent are  optimistic on gold this week; 28 per cent are “bearish” and 15 per cent are neutral.

Source: UAE