Gold price hits 7-year high, jumps over 2.5%!

• The coronavirus outbreak is likely to send it higher.

Gold prices surged more than 2.5 per cent to $1,688 on Monday evening, hitting over seven-year highs as investors rushed to safe haven buying.

Goldman has predicted that gold is headed towards $1,750/oz while Citi has said it could reach $2,000/oz within the next 12 to 24 months.

"The (Covid-19 coronavirus) virus outbreak is likely to send it higher as it is difficult to see what at this stage can halt or pause the rally perhaps apart from its own success," said Ole Hansen, head of commodities strategy at Saxo Bank.

Vijay Valecha, Chief Investment Officer at Century Financial, said dips in the yellow metal to $1,665 and $1,643 can be considered as buying opportunities. "On the upside, $1,700 will act as a psychological resistance. UAE 24K Gold rate is expected to trade in the range of Dh198 to Dh205 in the near term," he said.