Loding Loading ...
X
Century Financial Consultancy LLC ("Century") does not offer investment advisory or portfolio management services nor guarantees investment returns. We do not accept or make payments in cryptocurrency or digital currency. Our official website is www.century.ae. Beware of fraudulent companies or websites posing as Century. We are not responsible for any losses from using fake websites or entities. Trading in financial markets involves a significant risk of loss which can exceed deposits and may not be suitable for all investors. Before you start, please ensure you fully understand the risks involved.
  • AR AR
Century Financial Consultancy
Back

Thursday, October 19, 2017

Gulf News – Gold jewellery prices drop for third straight day

By Vijay Valecha in 'Century in News'

Gulf News – Gold jewellery prices drop for...

For the third consecutive day this week, UAE consumers are enjoying cheaper gold rates

Gold prices continued to trend lower as Diwali celebrations kicked into high gear on Thursday, with jewellery rates registering a week-on-week decline of Dh2.25 per gram.

The precious metal has recently been bearish and for three consecutive days this week, prices have been on a downward path. It had a bullish run earlier, having crossed the $1,300 level on Monday, but failed to sustain its strength.

Spot gold hit a low of $1,276.31 an ounce before noon, down from Wednesday’s peak of $1,288.85.

As of 11.32am, 24-karat gold in Dubai fell to Dh154.75 per gram from Dh155 the day earlier. Further dips were recorded for other jewellery pieces, with 22K retailing at Dh145.50 per gram, 21K at Dh138.75 and Dh18K at Dh119.

“Gold continues its weakness in the Diwali week, as almost all global equity markets are creating new highs on a regular basis,” said Vijay Valecha, chief market analyst at Century Financial.

“Gold is always considered as a safe haven to equities and bonds and usually has a negative correlation to these markets.”

But it looks like the weakness won’t last much longer, especially considering that the US dollar is showing indications of bottoming out and an interest rate adjustment by the US Federal Reserve before year-end is still very much in the picture.

“The US dollar has shown signs of bottoming out, expecting a Fed rate hike in December. This move on gold and the US dollar is seen as a temporary move and we remain bullish on gold in the medium to long term,” Valecha said.

Source: Gulf News.

View More