KHALEEJ TIMES, Tuesday, May 15, 2018 | Shaaban 29, 1439
Dubai gold prices slide slightly. Should you invest or wait?
Gold prices were little
changed on Tuesday, as the dollar held on to gains from the previous session
after a Federal Reserve official backed the case for further interest rate hikes
in the United States.
24k gold is priced at Dh158.75
in Dubai and 22k can be bought at Dh149.25.
Spot gold rose 0.1 percent to $1,314.24 per ounce
at 0056 GMT.
US gold futures for June delivery were, however,
down 0.3 percent at $1,314.10 per ounce.
The dollar index, which measures the greenback
against a basket of six major currencies, was steady at 92.631.
The Fed should continue its gradual approach to
raising interest rates given that inflation has not yet reached the US central
bank's 2 percent goal in a sustained way, Cleveland Fed President Loretta Mester
said on Monday.
The US yield curve could invert later this year or
early 2019, St. Louis Federal Reserve James Bullard said on Monday, in a market
move in which short-term US interest rates rise above longer-term bond yields, a
scenario which has preceded recent US recessions.
Three European Central Bank policymakers stuck
with an upbeat assessment of the euro zone economy on Monday, shrugging off
signs of a slowdown in inflation and activity.
Asia stocks pulled back on Tuesday, after an
uninspiring performance on Wall Street eclipsed support from US-China trade
optimism, while supply concerns kept crude oil prices near 3-1/2-year highs.
Israeli troops shot dead dozens of Palestinian
protesters on the Gaza border on Monday when the high-profile opening of the US
embassy to Israel in Jerusalem by the Trump administration raised tension to
boiling point after weeks of demonstrations.
President Donald Trump on Monday defended his
decision to revisit penalties for Chinese company ZTE Corp for flouting US
sanctions on trade with Iran, saying the telecom maker is a big buyer for US
Holdings of SPDR Gold Trust, the world's largest
gold-backed exchange-traded fund, fell 0.17 percent to 856.17 tonnes on Monday.
Shanta Gold will conduct further exploration near
its main mine in Tanzania after cutting costs in the past year to cope with
tougher mining laws, the chief executive told Reuters.
CI Investments Inc sharply decreased its holdings
in the world's biggest gold-backed exchange-traded fund during the first quarter
of 2018, a U.S. Securities and Exchange Commission 13F filing showed on Monday.