Though July started off fairly quietly from a gold buying and selling perspective in Dubai, all that could be about to change. Jewelry fans considering investing in new pieces for their collection could benefit from hitting the stores as soon as possible according to a Dubai-based analyst, who suggests that gold could be on the verge of some price hikes during August and September.
The cost listed for 24-karat gold is ready to jump by a rate of more than Dh4 for every gram, to get to the point of anywhere up to Dh153.80 in August, according to the chief market Analyst for Century Financial Brokers, Vijay Valecha. You can check the live gold rates here
A Pattern is Forming for Gold
According to Valecha, gold seems to be in the midst of a growth pattern. He noted that the precious metal is forming a triangle pattern, and until we reach around $1,195 per ounce, prices could be ready for a serious rally. Historically, the months of September and August have been positive for gold prices, and there’s a high probability of gold seeing a positive return investment. In fact, Valecha says the probability is around 70%.
In the United Arab Emirates, the price of 24k gold is ready to move upwards throughout August and into September, even though the precious metal saw a significant drop in the middle of the month. Fortunately, gold is back on the rise after Donald Trump, the US president’s comments on the strength of the US currency and interest rate had an impact on the trust of the economy.
On Twitter, Trump announced that both the European Union and China have been manipulating their currencies and making their interest rates lower. Following that tweet, the benchmark index for the dollar started dropping.
A Positive Move for Gold
As gold prices are once again settling at a higher rate, investors everywhere are jumping into action. Trump’s displeasure with the federal reserve interest rate causes a huge push in the dollar index, and as we know, when the dollar index goes down, the price of gold increases.