Gold Prices Lose Dh25 In One Week As Investors Await Fed Meeting
The 24K variant was trading at Dh533 at the market open on Monday, down from Dh536.75 at the close of the market on Friday. The yellow metal lost around Dh25 last week after rallying to a three-month high.
Recommended For You Etihad Rail sells over 100,000 tickets; Dubai station to see more people use trains dailyAmong the other variants, 22K, 21K, 18K, and 14K, were trading lower at Dh5493.75, Dh473.25, Dh405.75, and Dh316.50, respectively.
Globally, spot gold prices fell 0.14 per cent to $4,424.3 per ounce, while silver was trading at $66.4 per ounce, gaining 1.13 per cent.
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Analysts say the latest gold rally, which reached a three-month high near Dh4,700 last week, has several layers.
“The first is renewed concern about US fiscal sustainability and the dollar following the Treasury's decision to expand buybacks of longer-dated government bonds,” Ole Hansen, Head of Commodity Strategy at Saxo Bank, said, adding that the signal was more important than the actual amount involved.
He explained that that has helped revive the debasement theme that has supported gold during much of the past two years.“Importantly, gold has performed strongly despite elevated bond yields and inflation remaining well above the Federal Reserve's target,” Hansen explained.
“Besides an underlying and increasingly constant bid from central banks, this suggests investors are increasingly distinguishing between high yields driven by monetary tightening and high yields reflecting concerns about fiscal sustainability and government borrowing requirements.”
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