With gold prices hitting a new low this year, it may be just about time to invest in some new jewelry items like gold and silver bullions. There are lots of different factors which drives the price of gold, but the most important and the only relevant right now is the world inflation rate.
According to some market analysts, the price of gold has hit rock bottom this year.
This Sunday afternoon, for instance, 24-karat gold was already at Dh147 per gram, down by 75 fils since the beginning of this month. The gold price has dropped by a whopping Dh12 from last January. You can check the current gold rates: https://www.business24-7.ae/gold-rates-in-dubai
According to Vijay Valecha, an analyst at Century Financial, gold has reached the lowest price of the year. Apparently, it won’t get lower than this, so it may be just the right time to start buying some gold to diversify your investment portfolio.
The strengthening of the US dollar is probably the reason why gold prices have started to decline. Nonetheless, experts believe that this trend isn’t going to continue, one of their arguments being that August and September are usually periods when the demand for gold tends to increase.
A research note issued by Bank of America Merrill Lynch states that gold has recorded a steady decline over the first half of the year, despite the many uncertainties that affected global markets over the same period of time. This is althrough the fact that UAE has enabled to buy gold online. You can read more about it here: https://www.business24-7.ae/buy-gold-in-uae
Uncertainty ruling over Italy may have also contributed to pushing this trend one step further, but the conclusion is that the Euro has also declined.
According to this back’s experts, gold may see some upside, but it would surely be tightly related to the performance of the US dollar, as well as to other global market factors.
According to the same bank, it is possible that gold prices start to rise again, but this would only happen in the US dollar gets weaker, the cross-asset volatility remains at high levels, and the global and the US economy growth starts to slow down.