The prices of yellow metal
scaled a fresh six-year high earlier this week as the latest tit-for-tat trade tariffs by the United States and China battered global equities and boosted demand for safe-haven assets.
As gold is expected to rise further due to increasing uncertainty and volatility, Merrill Lynch head of metals research Michael Widmer said yellow metal
could hit $1,600 with central banks going for looser monetary policy.
Trading data have shown demand rise by China, the world second gold consumer after India, "and this is the top key cause for maintaining the price of the yellow metal
in the past month." he clarified.
The yellow metal
has leapt 10 per cent in four weeks as a weaker dollar, prospects of monetary easing by the US Federal Reserve and festering US-Iran tensions continued to fuel bullish sentiment in the market, analysts said.
"Sabaek" report added that local markets achieved a long recovery not seen in years where the low prices encouraged acquisition of the yellow metal
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In Dubai, a vibrant trading hub of the yellow metal
, one gramme of gold crossed the Dh200-mark for the first time.
The yellow metal
gained value by Rs700 per 12 grams and traded at Rs72,400.
While the yellow metal
plunged by Rs 625 to Rs 31,700 per ten gram, silver lost Rs 1,710 to Rs 54,000 per kg on reduced off take by jewellers and industrial units.
The lower prices offer buyers in the UAE an opportunity to stock up on the yellow metal
before the bullion will again start climbing.
According to gold traders, the yellow metal
prices saw an upward trend due to increased demand in view of the ongoing marriage season in the country.
Summary: Dubai's gold retail outlets experienced only "a negligible drop" in footfalls despite the yellow metal
's relentless price rally to record highs on Wednesday
KARACHI -- Gold price in Pakistan has increased by Rs200 and current price of yellow metal
stands at Rs69,100 per tola.