(MENAFN- The Peninsula)
QNA
Doha: Economic experts and analysts in the financial markets have predicted that the gold prices will remain under pressure soon, as markets are waiting critical US economic data that could affect the decisions of future fiscal policies, given the fluctuations in gold prices recently.
Speaking to Qatar News Agency (QNA), they alluded these fluctuations to multiple socioeconomic factors, highlighting that reducing the allocations of hedge funds for gold is among the foremost economic factors that have recently led to price declines.
Gold prices have witnessed a significant decline over the past two days, after rising by more than 19 percent since the beginning of 2024, and about 13 percent in 2023, amid projections that pressure on prices will continue in the upcoming period.
Globally, price of gold in spot transactions decreased by 0.3 percent, reaching roughly USD 2315.34 per ounce, while U.S. gold futures fell by 0.6 percent to USD 2328.60. This follows a rise of USD 38.90 last Tuesday, closing at USD 2467.80 per ounce, while in Qatar gold prices were dramatically declined, as the price of 24-carat gold per gram dropped to nearly SAR 281.87 on Friday after reaching around SAR 287.72 on Wednesday.
Financial advisor Ramzi Qasimia told QNA that the recent decline in gold prices over the past two days was a result of the US dollar regaining some of its strength, following significant declines in gold prices. This comes alongside increased likelihood of the Federal Reserve (the US central bank) reducing interest rates during the upcoming meeting scheduled for September.
He alluded the decline in gold prices to profit-taking activities, which have pushed gold down by approximately 3.5 percent to 4 percent over the past two days. This comes especially after prices reached record levels during the past week, highlighting that Investors are seeking safe havens for their investments, particularly amidst rising global inflation rates in most major economies.
For his part, Vice Dean of the School of Business for Quality at Al Al-Bayt University of Jordan ,Dr. Omar Gharaibeh, attributed the sharp decline in gold prices yesterday, Friday, and the day before yesterday, Thursday, from USD 2,485 per ounce to settle below USD 2,400, by 3.4 percent, to the rise in US Treasury bond yields by about 1.7 percent to 1.9 percent on all terms, whether two years, 10 years, 20 years, or 30 years, as the rise in Treasury bond yields contributed to the rise of the US dollar.
In turn, financial analyst, Ahmed Aql, stated QNA that the strong decline in many investment assets such as oil, gold, some other metals and even financial markets is due to several reasons, most notably the technical glitch that hit the global Internet yesterday (Friday) and affected many economic institutions around the world and caused the suspension of many business sector programs, which put pressure on some investors who preferred to wait until this crisis ends completely.
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