Gold price peaks at Dh220.25 per gram for 24K

The gold prices in Dubai have hit a new peak this morning as it touched Dh220.25 per gram for 24K gold as it followed international trends. - Reuters
The gold prices in Dubai have hit a new peak this morning as it touched Dh220.25 per gram for 24K gold as it followed international trends. - Reuters

Dubai - Spot gold was up 0.4 per cent at $1,822.11 per ounce; Silver hits near four-year peak



by

A Staff Reporter

Published: Tue 21 Jul 2020, 12:23 PM

Last updated: Tue 21 Jul 2020, 7:21 PM

Gold rose to a nine-year high on Tuesday as expectation of higher inflation from increased stimulus overshadowed the resultant gain in risk appetite, while silver breached the $20 level for the first time since September 2016.
Spot gold was up 0.4 per cent at $1,822.11 per ounce by 0730 GMT after hitting its highest since September 2011. US gold futures rose 0.4 per cent to $1,823.80.
The gold prices in Dubai have hit a new peak this morning as it touched Dh220.25 per gram for 24K gold as it followed international trends.
Gold prices in Dubai for 22K at 206.75 per gram; 21K at 197.50 per gram and 18K at 169.25 per gram. It may be recalled the prices here in the local market had peaked at Dh219.5 per gram for 24K gold on July 9.
"What's really driving the gold market is stimulus and we are going to get more of it. It's the eye candy that's driving sentiment right now," said Stephen Innes, chief market strategist at financial services firm AxiCorp.
Gold tends to benefit from widespread stimulus as the metal is widely viewed as a hedge against rising prices and currency debasement. Analysts are, however, divided on the outlook for inflation.
Further helping gold, the dollar fell to a more than four-month low versus major currencies. Silver jumped 2.2 per cent to $20.33, its highest since August 2016.
"Silver is starting to outperform gold here. On the one hand, it's obviously appreciating on the basis of increased appeal for precious metals," IG Markets analyst Kyle Rodda said.
"On top of that, there's likely to be an element of silver catching a bit on a rebound in global industrial activity."
Palladium rose 1per cent to $2,075.54 per ounce, while platinum was steady at $843.92. - With inputs from Reuters, sandhya@khaleejtimes.com
 


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