Gold set to rally to­wards $1,200

The Pak Banker - - INTERNATIONAL BUSINESS/SPORTS -

Gold's re­tail prices in Dubai edged lower on Mon­day as the bul­lion failed to sus­tain its rally on Thurs­day and Fri­day, drop­ping slightly by 0.6 per cent to $1,153.20 an ounce.

An­a­lysts, how­ever, are fore­cast­ing the pre­cious me­tal to go back up and hit $1,200 as in­vestors turn to safe haven as­set classes over the slow­down in China.

Stocks in China plunged nine per cent on Mon­day, fu­el­ing fears that the weak­ness will drag other economies down. There's also a sense of panic grip­ping the global fi­nan­cial mar­kets, with sev­eral in­dices, in­clud­ing those of Dubai, Abu Dhabi, Ger­many, Tai­wan and Tokyo slid­ing 5.8 per cent, 0.28 per cent, 3 per cent, 4.8 per cent, and 4.6 per cent re­spec­tively.

Re­tail gold prices in Dubai slipped to Dh140 per gram from 140.25 for 24K as of 11am Mon­day. The price for 22K gold was down from Dh133.25 on Sun­day to Dh133, while 21K dropped from Dh127.75 to Dh127.50. An­a­lysts said the down­turn in China are prompt­ing in­vestors to seek refuge in other as­sets, such as gold.

"Cer­tainly gold is find­ing it­self a bit of a safe-haven bid with all the volatil­ity that's go­ing on in mar­kets," Vic­tor Thi­an­piriya, com- mod­ity strate­gist at ANZ Bank, told Reuters. "If things do get a lot worse then gold will cer­tainly go a lot

higher."

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.