UAE gold rates: Analyst warns of new price hikes

collected by :kiven Dixter

An analyst based in Dubai said on Monday that gold is set to shine again, especially in the succeeding months of August and September. "Historically, August and September have been positive for gold prices and the probability of delivering a positive return is 70 per cent. In the UAE, the current 24K gold price is likely to move upwards towards Dh153.25 to Dh153.80 [until the end of August]," Valecha added. Trump said on Twitter that China and the European Union "have been manipulating their currencies and interest rates lower." After the tweet, the benchmark dollar index dropped. "Gold prices settled higher Friday, chipping away some of its weekly loss, as comments from Trump on US interest rates and the dollar weighed heavily on the greenback," said Valecha.

Analysts slash gold price forecasts after second quarter plunge - Reuters poll

LONDON (Reuters) - Banks and brokerages have cut their average gold price forecasts for this year and next after heavy losses in the second quarter, but expect the metal to bounce back towards $1,300 an ounce, a Reuters poll showed on Monday. A poll of 35 analysts and traders conducted this month forecast an average gold price of $1,301 an ounce in 2018 and $1,325 in 2019, from predictions of $1,334 and $1,352 respectively in a similar poll three months ago. Low prices are also beginning to spur physical buying in India and China, the biggest gold consumers, helping support gold, said GFMS analyst Rhona O'Connell. ADVERTISEMENT"We do expect gold to rebound towards $1,300, although whether it has the legs to push convincingly through that level has to be doubtful in the short term at least," she said. But it is likely to rebound faster than gold, the poll showed.

What is the price of gold and is it still a safe bet for investors?

referring to Gold has long been referred to as a "safe haven" for investors during times of economic uncertainty, market volatility and high inflation. Currency markets are another major driver of the gold price. "Gold is not only bought as an investment," says Gold Price, "but it is also bought for use in other areas such as industry and jewelry making", meaning factors such as jewelry demand can also become factors. Because an ounce of gold is the same whether it is in the US or in Japan, the spot gold price is theoretically the same everywhere in the world. The gold standard is a monetary system whereby a country's currency or paper money has its value directly linked to its gold reserves.