An advisory body to the UAE government has suggested that the central bank review the country's currency peg to the US dollar, but local bankers said any change to the peg remained very unlikely for the foreseeable future.
The UAE dirham fell to its lowest against the US dollar in more than a year in the one-year forwards market on Thursday, as speculation grew that slumping oil prices would lead Gulf states to ditch their currency pegs to the dollar.
Gold dipped for a second session on Thursday, holding below $1,200 an ounce, as outflows resumed from the top bullion exchange-traded fund and traders remained cautious before an upcoming Swiss referendum on central bank bullion assets.
While the year 2014 began with expectations of higher growth, higher yields and higher stocks, it is ending with the reality of lower inflation, lower yields and higher stocks, a report said.
It also ends with asset markets and th
Gold prices could tumble towards $800 to $900 an ounce, not seen since the 2008/2009 financial crisis, metals merchant and hedge fund Red Kite warned even as the precious metal extended losses to a second session on Tuesday.
Gold languished near its lowest level since April 2010 on Thursday as investors dumped the safe-haven metal amid strength in the dollar and equities, with markets now fearing $1,000 an ounce as the next target level.
Gold and silver extended their losing streak to a fourth session on Monday to trade near their lowest in more than four years, with a stronger US dollar and possible technical selling likely to keep them under pressure.
Brent crude bounced off a four-year low on Wednesday to above $85 a barrel, a level that was still down 25 per cent since June, as a drop in the value of the dollar attracted some cautious buying in the oil market.
On Tuesday, the
Gold retreated from an earlier four-week high on Tuesday, losing momentum as lacklustre euro zone data hurt the euro versus the dollar, though fears over global growth limited losses.
Deepening worries over the health of the globa
Gold held above $1,200 an ounce on Tuesday, retaining most of its sharp overnight gains following a bout of profit-taking in the dollar, but optimism over the US economy and possibility of higher rates kept investors wary.