Gold traders are concerned about the future price movement as the current upwards trend has started to look somewhat valuable.
The coming week has a strong potential to repair the current momentum in gold prices, or it could take further wind out of it, which means that we could see the price collapse.
Prices reached their peak in April when they touched the highs of $2,079, and interestingly, it happened at a time when the US banking system came up against another major threat.
At that time, the threat came from the US Federal Reserve’s monetary policy action rather than the previous one, when banks started to sell mortgage-backed assets to clients that had little to no value.
Gold traders were heavily optimistic about the gold price surging to record highs when the Russia-Ukraine war began; the thought at the time was that we would see a massive rally in gold and Bitcoin prices, as both of them are considered safe haven assets.
However, the geopolitical events failed to push the prices to record highs, dampening all the optimism in terms of safe haven assets, and this is because smart money knew at that time that this event was going to be contained despite some detrimental impact.
The collapse of some of the US regional banks sent alarm bells ringing throughout the world, and it provided massive tailwinds for the gold price. The Fed at the time had a strong hawkish stance as inflation was running hot and there were strong chances that it would continue to raise rates as it had little to no other option if it wanted to control inflation.
The situation, however, has changed significantly since, and inflation has not only dropped from its record level – we also saw the US inflation reading nearing the 3 per cent level last week, which is now only one percentage point away from the Fed’s desired level.
This means that there is less pressure on the Fed to continue with its hawkish monetary policy. And gold traders are now looking at the most important event that will unfold on Wednesday, when the Fed will announce its monetary policy decision, which will have a massive influence on the gold price.
Gold traders are likely to remain glued to their screens next week, as any data or comments from the Fed between Monday and Wednesday will bring volatile moves for the dollar index, which will move the gold price.
Going into the meeting, the general anticipation among traders is that the Fed will increase the interest rate two more times this year, and each time it will increase the interest rate by 25 basis points.
So basically, this means that another interest rate rise of 50 basis points in total and 25 basis points next week will take place, which means that the gold price is likely to move lower.
However, I believe that the Fed is going to be very much done with its interest rate-raising cycle on Wednesday, when it will be announcing the last interest rate increase of 25 basis points and taking the rest of the year off.
This is because its hard work has paid off to a large degree, and now it is time to sit and wait. The Fed will leave the room open to act if inflation readings begin to move in an undesirable direction or do not continue to move in the expected direction.
Labour market data continues to support the fact that the Fed can take more risks by being hawkish.
As the market is expecting two interest rate increases, the gold price is unlikely to show significant movement on the back of an anticipated 25 basis point interest rate rise. A meaningful movement will only take place if the Fed shows its hawkish tilt in the commentary, which means that the gold price could test the support of $1,900 or even $1,860.
However, the absence of the hawkish tilt could support the gold price rally, and we could see the price testing the level of $2,000.
There is another important point to keep in mind, and that is when the dust will settle. It is highly possible that the Fed increases the rate by 25 basis points and keeps the hawkish tilt, which may hamper the rally in the gold price.
But that could be an opportunity to bag some bargains, as the data from there on is going to dictate what the Fed will do. And the fact that inflation numbers are improving – and if they continue to improve – we could see some early signs emerging in terms of comments from Fed officials that would indicate no need for further rate increases.
Naeem Aslam is chief investment officer at Zaye Capital Markets
UAE currency: the story behind the money in your pockets
Titanium Escrow profile
Started: December 2016
Founder: Ibrahim Kamalmaz
Based: UAE
Sector: Finance / legal
Size: 3 employees, pre-revenue
Stage: Early stage
Investors: Founder's friends and Family
Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
What are the GCSE grade equivalents?
- Grade 9 = above an A*
- Grade 8 = between grades A* and A
- Grade 7 = grade A
- Grade 6 = just above a grade B
- Grade 5 = between grades B and C
- Grade 4 = grade C
- Grade 3 = between grades D and E
- Grade 2 = between grades E and F
- Grade 1 = between grades F and G
RESULTS
5pm: Maiden | Dh80,000 | 1,600m
Winner: AF Al Moreeb, Tadhg O’Shea (jockey), Ernst Oertel (trainer)
5.30pm: Handicap | Dh80,000 | 1,600m
Winner: AF Makerah, Adrie de Vries, Ernst Oertel
6pm: Handicap | Dh80,000 | 2,200m
Winner: Hazeme, Richard Mullen, Jean de Roualle
6.30pm: Handicap | Dh85,000 | 2,200m
Winner: AF Yatroq, Brett Doyle, Ernst Oertel
7pm: Shadwell Farm for Private Owners Handicap | Dh70,000 | 2,200m
Winner: Nawwaf KB, Patrick Cosgrave, Helal Al Alawi
7.30pm: Handicap (TB) | Dh100,000 | 1,600m
Winner: Treasured Times, Bernardo Pinheiro, Rashed Bouresly
Joker: Folie a Deux
Starring: Joaquin Phoenix, Lady Gaga, Brendan Gleeson
Director: Todd Phillips
Rating: 2/5
Know before you go
- Jebel Akhdar is a two-hour drive from Muscat airport or a six-hour drive from Dubai. It’s impossible to visit by car unless you have a 4x4. Phone ahead to the hotel to arrange a transfer.
- If you’re driving, make sure your insurance covers Oman.
- By air: Budget airlines Air Arabia, Flydubai and SalamAir offer direct routes to Muscat from the UAE.
- Tourists from the Emirates (UAE nationals not included) must apply for an Omani visa online before arrival at evisa.rop.gov.om. The process typically takes several days.
- Flash floods are probable due to the terrain and a lack of drainage. Always check the weather before venturing into any canyons or other remote areas and identify a plan of escape that includes high ground, shelter and parking where your car won’t be overtaken by sudden downpours.
Company profile
Name: Tharb
Started: December 2016
Founder: Eisa Alsubousi
Based: Abu Dhabi
Sector: Luxury leather goods
Initial investment: Dh150,000 from personal savings
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
What can you do?
Document everything immediately; including dates, times, locations and witnesses
Seek professional advice from a legal expert
You can report an incident to HR or an immediate supervisor
You can use the Ministry of Human Resources and Emiratisation’s dedicated hotline
In criminal cases, you can contact the police for additional support
Some of Darwish's last words
"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008
His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.
The Settlers
Director: Louis Theroux
Starring: Daniella Weiss, Ari Abramowitz
Rating: 5/5
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
Test
Director: S Sashikanth
Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan
Star rating: 2/5
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
THE%20HOLDOVERS
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MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
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How much do leading UAE’s UK curriculum schools charge for Year 6?
- Nord Anglia International School (Dubai) – Dh85,032
- Kings School Al Barsha (Dubai) – Dh71,905
- Brighton College Abu Dhabi - Dh68,560
- Jumeirah English Speaking School (Dubai) – Dh59,728
- Gems Wellington International School – Dubai Branch – Dh58,488
- The British School Al Khubairat (Abu Dhabi) - Dh54,170
- Dubai English Speaking School – Dh51,269
*Annual tuition fees covering the 2024/2025 academic year
Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
UAE currency: the story behind the money in your pockets
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
KILLING OF QASSEM SULEIMANI
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