Gold Hits Record High on Weak Dollar, Middle East Tensions

FILED - 16 March 2023, Bavaria, Munich: Gold bars and gold coins of different sizes lie in a safe on a table at the precious metal dealer Pro Aurum. Photo: Sven Hoppe/dpa
FILED - 16 March 2023, Bavaria, Munich: Gold bars and gold coins of different sizes lie in a safe on a table at the precious metal dealer Pro Aurum. Photo: Sven Hoppe/dpa
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Gold Hits Record High on Weak Dollar, Middle East Tensions

FILED - 16 March 2023, Bavaria, Munich: Gold bars and gold coins of different sizes lie in a safe on a table at the precious metal dealer Pro Aurum. Photo: Sven Hoppe/dpa
FILED - 16 March 2023, Bavaria, Munich: Gold bars and gold coins of different sizes lie in a safe on a table at the precious metal dealer Pro Aurum. Photo: Sven Hoppe/dpa

Spot gold prices hit a record high on Friday as a weak dollar, expectations of more U.S. interest rate cuts and tensions in the Middle East more than offset muted physical demand in Asia.

Spot gold was up 1.0% at $2,613.09 per ounce by 1058 GMT after hitting a record high of $2,614.49. US gold futures rose 0.9% to $2,638.30.

Non-yielding gold is up 27% so far this year, heading for its biggest annual rise since 2010. It got the latest boost from the start of the Federal Reserve's easing cycle on Wednesday, Reuters reported.

"We expect further dollar depreciation, as the Fed catches up with other central banks who started their cutting cycles earlier. That should be gold price positive," said WisdomTree commodity strategist Nitesh Shah.

Gold could hit $3,000 per ounce in a year amid geopolitical risks and investors hedging against a slowing economy, he added.

However, from a technical point of view, gold's Relative Strength Index moved into "overbought" territory on Friday, at 70.4.

"Over the last few weeks gold's inverse relationship with the US dollar, and indeed US treasury yields, has been very much reinstated," said independent analyst Ross Norman.

"The path of least resistance for gold looks to be to continue higher and, even though it looks well overbought and much above fair value, the momentum trades are behind it and price strength looks in order," Norman said.

Meanwhile, demand from the physical sector in Asia remains light and gold is trading there at a discount to the London price. Top consumer China did not import any gold from a major trading hub Switzerland in August, for the first time in 3-1/2 years.

In other metals, silver gained 1.8% to $31.32, platinum was steady at $989.21 and palladium fell 0.2% to $1,078.58.



Derayah Financial Joins Flurry of Saudi Firms Seeking a Listing

Derayah Financial Joins Flurry of Saudi Firms Seeking a Listing
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Derayah Financial Joins Flurry of Saudi Firms Seeking a Listing

Derayah Financial Joins Flurry of Saudi Firms Seeking a Listing

Saudi Arabia's Derayah Financial became the first firm to announce plans this year to float on Riyadh's main market, after it said on Thursday it was offering investors a 20% stake via an initial public offering (IPO).
The company is planning to sell 49.94 million existing shares in the IPO, it said in an intention to float document, adding the price for the offering will be determined at the end of a book-building period, without providing further details, Reuters said.
"I am excited to welcome new shareholders to join us on this journey as we continue to drive innovation, create value, and contribute to the Kingdom's ambitious economic transformation," co-founder and chairman Taha AlKuwaiz said in the document.
Founded in 2009, Derayah provides brokerage and trading services, as well as asset and wealth management solutions, with 15.1 billion riyals ($4.03 billion) in assets under management as of the end of June.
The possible listing is part of a flurry of IPOs in the Gulf driven in part by local governments' economic diversification strategy and listings by private groups and family businesses.
Saudi Arabia's red-hot IPO market saw a number of financial services firms including Rasan Information Technology and Yaqeen Capital make their market debut last year.
Others like the investment banking arm of one of the Kingdom's biggest lenders, Riyad Bank, could follow suit this year.
Derayah posted a net profit of 228 million riyals ($60.80 million) in the first half of 2024, up 70% from the same period a year earlier, it said on Thursday.
It appointed HSBC Saudi Arabia as sole financial adviser, bookrunner, global coordinator, lead manager and underwriter for the IPO.