Gold drifted away from two-week lows on Wednesday as the dollar surrendered some gains, but analysts said bullion is unlikely to rise sharply ahead with losses in the greenback seen limited.
Spot gold was up 0.7 per cent at $1,272.20 an ounce by 9.47am UAE time, after touching a low of $1,257.25 on Tuesday, its weakest since April 28.
Appetite for gold appeared to have eased after the metal failed to convincingly breach the $1,300 resistance level last week.
But it was still up nearly 20 per cent for the year as expectations for a near-term increase in US interest rates have faded.
The dollar slipped versus a basket of major currencies , making dollar-priced assets such as gold cheaper for holders of other currencies. Weaker Asian equities also helped gold.
Mark To, head of research at Wing Fung Financial Group in Hong Kong, said that the $1,300-$1,400 level would be a reasonable price range for bullion for the rest of the quarter.
Gold is supported largely by expectations that the next US interest rate increase will only happen later in the year as Fed policymakers take note of challenging global economic conditions, he said.
"The current situation is favourable to gold but it is not overwhelmingly favourable," said To, adding that the US economy appears to be in good shape overall. "That's why people take some profits along the way."
US gold for June delivery gained 0.5 per cent to $1,271.20 an ounce.
"Looking ahead, we see limited upside for gold pricing given the limited room for the Fed to surprise to the downside, limited room for the dollar to depreciate, and limited room for China to drive (emerging markets) currency strength to contribute to dollar weakness," Goldman Sachs said in a report.
Gold rates for Wednesday, May 11, 2016
|LATE EVENING |
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|18 K*|| |
DD/TT RATES AT 03.45 PM - 05 May 2016
Weekly Gold Rates
Rates will be updated twice daily
Emirates 24|7 brings you the daily Dubai gold rate (22k, 24k, 21k and 18k), as well as currency exchange rates, including the Indian rupee, Pakistani rupee, Philippine peso, Sri Lankan rupee, sterling pound, euro and may more against the UAE dirham (US dollar).
The rates for 24 carat, 22 carat, 21 carat, 18 carat and Ten Tola (TT) Bar (11.6638038 gram) will be updated four times a day to keep them fresh and relevant for buyers of gold bars and gold jewellery in the UAE.
The update times for Retail Gold Rate in Dubai will be at 9.30am, 2.30pm, 5pm and 8pm (unless there is drastic fall or rise in the international rate).
On Saturdays, the gold rates will be updated at 9.30am and this rate will stay static through Saturday and Sunday until the international market reopens on Monday.
Please note that the retailers add making charges separately to the quoted rate of gold.
The Retail Gold Rate in Dubai is being supplied by the Dubai Gold and Jewellery Group.
Foreign Exchange Rates
The Foreign Exchange Rates of major currencies will be updated twice each working day at around 8:30am and 3:30pm.
These will cover both the Remittance Rates [for sending money] and the Currency Notes Rates [for buying and selling of currency notes].
The Foreign Exchange Rates are being supplied by UAE Exchange.
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