Latest gold and currency rates in the UAE
Gold dropped slightly towards its weakest level in five years earlier this morning after the Federal Reserve said the US economy keeps strengthening, supporting a possible interest rate increase when the Fed meets again in two months.
After a two-day meeting, policymakers stated earlier this week, that they felt the economy had overcome a first-quarter slowdown and was "expanding moderately".
That sustained the greenback against a basket of currencies, making dollar-priced gold more expensive for buyers using other currencies.
Spot gold dropped 0.3% to $1,093.40 an ounce by 0239 GMT (6.39am UAE time). It sank to as low as $1,077 last week, its weakest since February 2010, after a selloff in New York and Shanghai and has since struggled to recover above $1,100.
"We still do think the bearish pressure on gold prices is strong. We don't expect to see any substantial recovery," said Howie Lee, analyst at Phillip Futures in Singapore.
Whether a US rate hike – which would be the first since 2006 – came in September or December was immaterial, said Lee who sees the next major support at $1,000.
"The slide that we've seen last week showed investors were already pricing in the effect of the first rate hike whether it's September or December. What matters is after the first rate hike, how would they conduct the rest of the rate increases."
If you’re looking for financial advice in Dubai, deVere Acuma, as part of the deVere Group can help you secure your pension.
Gold dropped slightly towards its weakest level in five years earlier this morning after the Federal Reserve said the US economy keeps strengthening, supporting a possible interest rate increase when the Fed meets again in two months.
After a two-day meeting, policymakers stated earlier this week, that they felt the economy had overcome a first-quarter slowdown and was "expanding moderately".
That sustained the greenback against a basket of currencies, making dollar-priced gold more expensive for buyers using other currencies.
Spot gold dropped 0.3% to $1,093.40 an ounce by 0239 GMT (6.39am UAE time). It sank to as low as $1,077 last week, its weakest since February 2010, after a selloff in New York and Shanghai and has since struggled to recover above $1,100.
"We still do think the bearish pressure on gold prices is strong. We don't expect to see any substantial recovery," said Howie Lee, analyst at Phillip Futures in Singapore.
Whether a US rate hike – which would be the first since 2006 – came in September or December was immaterial, said Lee who sees the next major support at $1,000.
"The slide that we've seen last week showed investors were already pricing in the effect of the first rate hike whether it's September or December. What matters is after the first rate hike, how would they conduct the rest of the rate increases."
If you’re looking for financial advice in Dubai, deVere Acuma, as part of the deVere Group can help you secure your pension.
Category
News you might like
Media contact
Acuma’s Public Relations Department deals with all areas of the media and external communications including international, national, regional, local, trade, consumer, print, broadcast, social and online. The Department aims to provide a helpful service to journalists, broadcasters and editors, amongst others, and reply to all media enquiries, including urgent enquiries out of hours, within agreed deadlines. Our press office does not have access to client details and will not be able to assist with individual client enquiries. Please contact Head of Media and Public Relations for deVere Group on [email protected] or call +44 2071220925.