Latest gold, forex rates in UAE: Gold makes a U-turn

London (Aug 14)  Gold turned slightly lower as the US dollar pared losses on the last trading day of the week, with investors grabbing profits after the metal jumped more than 1 per cent following US retail sales data that were unexpectedly flat in July.    

Spot gold ended the week flat at $1,335.95 an ounce while US gold futures ended marginally negative at $1,338.35/oz.

Earlier, spot gold rallied as much as 1.4 per cent to $1,355.80 after Friday's retail reading for last month surprised economists and suggested consumer spending was cooling after the second quarter's brisk 4.2 per cent rate of increase.    

Gold rates for Saturday, August 13, 2016

The dollar fell 0.6 per cent against a basket of main currencies after data prompted investors to roll back expectations on when the Federal Reserve will raise rates, but was down around 0.2 per cent later in the day.     
 Gold is highly sensitive to rising US interest rates, as the opportunity cost of holding the non-yielding asset increases while boosting the dollar, in which it is priced.

Source: UAE24/7