KHALEEJ TIMES, Monday, Jan 4, 2021 | Jamadi Al Awwal 20, 1442
Gold scales eight-week high, here are today's prices in UAE
Emirates:
Gold prices started the new year on a high by notching an eight-week peak
after surpassing the key $1,900 level on Monday, as a surge in Covid-19
cases and prospects of tougher coronavirus control measures lured investors
to the safe-haven metal.
Spot gold rose 1.1 per cent to $1,919.07 per ounce by 0246 GMT, having hit its
highest since Nov. 9 at $1,920.09, while U.S. gold futures climbed 1.5 per cent
to $1,923.50.
The precious metal is priced at Dh230 for 24K, Dh216 for 22K, Dh206for 21K and
Dh176.75 for 18K, per gram in UAE.
A business survey on Monday showed that activity growth in China’s vast
industrial sector had slowed, raising doubts about swift global economic
rebound. Investors also looked forward to data from the United States and Europe
that is due later in the day.
“Some potentially challenging macro data adds support for gold. The December
PMIs could show elemental weakness, given the fact that Covid-19 is still
ravaging livelihoods in the United States and Europe,” said Dominic Schnider,
head of commodities and APAC forex at UBS Wealth Management in Hong Kong.
The dollar remained weaker against rivals, making gold cheaper for other
currency holders, while Nikkei was off the 30-year high milestone as possible
tightening in coronavirus emergency rules for Tokyo weighed on sentiment.
British Prime Minister Boris Johnson hinted at tougher lockdown restrictions,
further lifting bullion’s allure.
“A return to normal, thanks to the vaccines, at the earliest is in the second
half of the year. That means monetary policy needs to be loose and that kind of
environment can still entice people to hold gold as an insurance asset in the
portfolio,” Schnider said.
Markets now await US Federal Reserve’s minutes of the latest meeting on
Wednesday for clues on policy outlook.
Investor focus was also on Tuesday’s Georgia runoff elections that will decide
the control of the US Senate, and the likely fate of President-elect Joe Biden’s
legislative agenda.
Silver gained 2.6 per cent to $27.03 an ounce. Platinum rose 1.6 per cent to
$1,085.22 and palladium climbed 0.6 per cent at $2,462.70.
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