Gold could hit $1,875, if it crosses $1,800 barrier

Precious metal trades higher on Tuesday morning

  
Gold bars and coins are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, August 14, 2019. Image used for illustrative purpose

Gold bars and coins are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, August 14, 2019. Image used for illustrative purpose

REUTERS/Michael Dalder
 
 

Gold prices were trading higher on Tuesday morning, hitting more than a two-month high with analysts seeing precious metal touching $1,875 an ounce if it manages to break the $1,800 barrier.

Spot gold was up 1.0 per cent or $17.70 an ounce to $1,786.71 per ounce by 9.15am UAE time. It had hit a high of $1,797.75 an ounce on Monday evening. 

In Dubai, 24K retail price stood at Dh216.5 per gram on Tuesday morning, as compared to Dh215 on Monday morning. Dubai Gold and Jewellery Group data showed that the 24K price closed at Dh217 per gram on Monday.

Among other variants of the precious yellow metal, 22K was trading at Dh203.5, 21K at Dh194.25, and 18K at Dh166.5 per gram.

"The reversal in the dollar is weighing on gold a bit, we've seen the dollar strengthen despite the Feds near-term dovish rhetoric," said DailyFX currency strategist Ilya Spivak.

"On the top side, immediate resistance for gold lies at $1,800 per ounce. If we can break that, we open the door for $1,850 or $1,875 as a follow on levels in the immediate."

Vijay Valecha, chief investment officer at Century Financial, predicted earlier this week that the yellow metal could test $1,800 this week.

 

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