Has gold rates hit rock bottom in UAE?
The gold rates have hit their lowest this year. Guess what that spells out for residents living in Dubai near the gold souk this time year round. It is about that time to buy some new jewellery – all gold everything – at a big bargain.
These rates add more bang for the buck for residents in UAE. The price of gold has hit its lowest and has also bottomed out most probably according to the latest analysis.
As of 5:00 PM on Sunday, 24-karat gold was trading at AED 147 per gram, down by 75 fils since the beginning of the month and cheaper by a whopping AED 12 from around January this year.
“Gold has slashed its shine and has come to the lowest point of the year. Gold prices have not dropped [further] over the weekend and seem to have bottomed out. This might be a good time to be buying gold,” said Vijay Valecha of Century Financial.
According to a research note by Bank of America Merrill Lynch, “Even though global markets have been affected by a range of uncertainties in the first half of 2018, gold has declined. In our view, this was heavily influenced by a stronger US Dollar.”
The bank said that, “It is likely for the precious metal to see some upside, but any price gains would be dependent on the performance of the US dollar, among other factors.”
“We see some upside to gold, but expect price gains to materialize only if the US Dollar weakens, the global / US growth starts to slow and cross-asset volatility remains elevated,” the bank added.