Gold price likely to average $1,025 an ounce this year
DUBAI: Gold's retail prices in Dubai continued to hold steady on Sunday although analysts are expecting the bullion to resume its weakness following the recovery of the global stock markets. Overall, there are still some bargains to be had for gold bugs in Dubai, with Sunday's retail prices still lower compared to almost a week ago, when the yellow metal was retailing at Dh140 per gram for 24K. As the US dollar picked up strength on Friday, the UAE dirham continued to rise against other currencies, with the Indian rupee pegged at 18.01 per dirham and Philippine peso at 12.7 on Sunday, slightly higher than Thursday's exchange rates.
As of August 30, prices for 24-carat (24K), 22K, 21K, 18K and ten tola gold bar remained unchanged at Dh137.25, Dh130.50, Dh125 Dh108.25 and Dh15,720, respectively, compared to the previous day. Gold prices are expected to dip further this year. According to ABN Amro's forecast, gold will drop from an average of $1,218 an ounce in the first quarter of the year to $1,025 by the end of 2015. The bullion hit a one-week low of $1,117.35 on August 21.