Dubai: Gold’s retail prices in Dubai continued its losing streak on Wednesday, shedding off as much as Dh4 per gram over a two-week period, as everyone awaits the decision of the US Federal Reserve on interest rates.
The price for 24-carat gold stood at Dh133 as of 11am, down by a dirham from a day earlier and Dh4 from September 2. Spot gold was trading at $1,104.30 an ounce, down from $1,122.50 a week ago, but prices are expected to move once the Fed comes up with a decision on Thursday.
Although gold has been losing its value recently due to weak investor sentiment, the precious metal is still expensive compared to other commodities, such as platinum, silver and copper.
ABN Amro has recently compared the current values of commodities to the long-term average since the 1990s and the bank’s forecasts for the end of 2015 and 2016.
“We find that gold prices are still relatively expensive despite prices being at 5-year lows,” the bank stated in its report seen by Gulf News.
The Dutch bank has predicted that the bullion will continue to weaken and trade hands at $1,000 an ounce by December this year. Prices will drop further next year, with the price hitting as low as $800 an ounce by December 2016.