Dubai: Gold prices cross Dh500 per gram, rising over Dh21 this week so far

Gold prices continued their upward trend, as they crossed Dh500 per gram, rising over Dh21 this week so far.

The Dubai Jewellery Group data showed 24K trading at Dh507.25 per gram at the opening of the markets on Thursday, compared to Dh504.75 per gram at the close of the markets on Thursday. The precious metal crossed the Dh500 mark again, nearly a month later, as prices eased over the past few weeks due to profit-taking. It has risen by Dh21.5 per gram so far this week.

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Among the other variants of the yellow metal, 22K, 21K, and 18K were selling at Dh469.75, Dh450.25, and Dh386 per gram, respectively. Spot gold surpassed $4,200 mark, trading at $4,215.61 per ounce on Thursday morning. On the technical side, gold has broken through key resistance levels around $4,150 and is consolidating above $4,200.

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Antonio Di Giacomo, senior market analyst at xs.com, said gold prices remain near the $4,200 per ounce level, supported by the weakness of the US dollar and a renewed appetite for safe-haven assets.

“The greenback lost strength despite an initial rebound, as investors grow optimistic that the US Congress may overcome the federal government funding deadlock this week. The resumption of government operations will also allow the release of key economic data, including inflation and employment reports that the Federal Reserve considers before making its next monetary policy decision,” he said.

Analysts expect a highly volatile week, with investors closely watching for any signals regarding the future of interest rates.
According to analysts from UBS and DailyFX, the fundamentals for gold remain strong. Central bank demand, rising global inflation, and the persistent weakness of the dollar continue to create a favorable environment for the precious metal. Moreover, negative real interest rates and expectations of a more cautious Fed have fueled gold purchases as a hedge against uncertainty.

Waheed Abbas

waheedabbas@khaleejtimes.com

Waheed Abbas is Assistant Editor, covering real estate, aviation and other business stories that directly affect the lives of UAE consumers. He frequently reports human interest stories, too.