UAE gold prices rally to one-week high

Dubai-UAE (Nov 2)  Precious metal prices went up for the first time in a week on Thursday, just after the US Federal Reserve had announced it is standing pat on interest rate adjustments.

Some analysts, however, are still not convinced that gold will hold its positive momentum. The metal showed some strength amid a softer US dollar and the uncertainty over US president Trump’s nominee for the US Federal Reserve chair.

After trading low for several days, the bullion hit $1,281.43 an ounce, the highest since October 26, according to Reuters. By 0617 GMT, gold was at $1,278.10, up by 0.3 per cent.

In the UAE, 24-karat gold soared back to Dh155 per gram, the same level reached a week earlier and up by Dh1.25 from Wednesday. The prices of 22K, 21K and 18K also rose to Dh145.75, Dh139 and Dh119.25 per gram, respectively.

The monetary policy-making body announced at the end of its two-day meet on Wednesday that it will not adjust the interest rates, which serve as basis for fixing borrowing rates, including mortgages and credit cards.

Gold has also gained some support from an uptick in demand from investors in China. “The return of Chinese investor interest in gold at these levels is a welcome vote of confidence for long-suffering gold bulls,” Jeffrey Halley, senior market analyst with OANDA, was quoted by Reuters as saying.

According to economies.com, gold is expected to remain bearish today, with trading range expected between $1,263 and $1,290 an ounce.

GulfNews