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Dubai gold prices rise, further gains likely

Dubai - An uptick of precious yellow metal prices ahead of US Federal Reserve meeting this week

Global gold prices opened higher on Monday morning ahead of the US Federal Reserve meeting this week.

Spot gold opened 0.1 per cent higher at $1,779.36 per ounce on Monday morning. US gold futures rose 0.1 per cent to $1,780.10 per ounce. (Check out the latest gold/forex rates in UAE)

In Dubai, retail gold prices rose on Monday morning, as 24K increased Dh0.50 per gram to Dh215.75.

While 22K, 21K, and 18K were priced at Dh202.75, Dh193.25, and Dh165.75 per gram, respectively.

“As for gold prices, we see substantial recovery in price, and it seems like traders want to push the metal price higher,” said Naeem Aslam, chief market analyst at AVATrade.

“For the past few days, we did see some weakness creeping in for the precious metal mainly because of the strong US economic numbers; however, those concerns aren’t there today, and gold prices are taking advantage of a weaker dollar index,” he said.

The dollar index nursed losses against its rivals on Monday, making gold less expensive for other currency holders.

India's physical gold demand faltered last week, as strict restrictions to contain the rapid spread of Covid-19 kept buyers away.

“Investors are primarily concerned about the serious rise in coronavirus cases in India and its impact on feeble global economic recovery. There is no doubt that the Coronavirus situation is out of control in India as over 350,000 new Covid-19 cases were registered on Sunday,” said Aslam.

-waheedabbas@khaleejtimes.com