Latest rates: Gold drops to its lowest this week

Latest rates: Gold drops to its lowest this week
Precious metal trading lower on Thursday compared to last Sunday's prices
Published: 12:40 October 22, 2015
By Cleofe Maceda, Senior Web Reporter
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Dubai:  Retail gold prices in Dubai dropped to their lowest level this week as the US dollar recovered some of its losses and the rate increase by the Federal Reserve remained unclear.

As of 12 noon, 24-carat gold was retailing at Dh140.25 per gram, down by Dh1.25 from last Sunday. The price for 22K stood at Dh133.25, while 21K and 18K traded at Dh127.75 and Dh110.50, respectively.

Spot gold settled at $1,168.20 an ounce by 0645 GMT after falling to $1,163.50 on Wednesday, the lowest since October 13, according to a Reuters report.

The bullion climbed to a four-month high of  $1,192 per ounce last week when the greenback showed some weakness and expectations of an interest rate increase this year started to dissipate.

Ole Hansen, head of commodity strategy at Saxo Bank, however, said that the precious metal is now “vulnerable to a pullback”.

“The combination of a wobbly dollar, fading rate hike expectations and an improved technical outlook all helped drive gold to a four-month high last week. The positive short-term technical outlook, however, is now blighted by a big rise in bullish bets, which leaves the metal vulnerable to a pullback,” Hansen said in a research note on Thursday.

Despite the recent downtrend, Thursday’s prices are still higher compared to the beginning of the month, when 24-carat gold was trading at Dh134.25 per gram.

According to ABN Amro’s forecasts, gold will register further price declines towards the end of the year, but will not go lower than the $1,100 level.

The Dutch bank has revised its year-end forecast from $1,000 to $1,100 an ounce, citing that it expects the US dollar to be weaker than earlier expected, while the Federal Reserve is likely to adjust the rates only in 2016.

Gold Rate: To keep up to date with gold prices, go to our gold rate page.
Latest rates: Gold drops to its lowest this week Latest rates: Gold drops to its lowest this week Reviewed by Ajit Kumar on 9:26 PM Rating: 5

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