Dubai: Gold prices trade at record high; 22K rises to Dh452.75

Gold prices in Dubai hit a record high on Monday morning as 22K surpassed Dh452 per gram at the opening of the markets.

The Dubai Jewellery Group data showed 24K rising Dh4.5 to Dh488.75 per gram while 22K rose to Dh452.75 per gram, up Dh4.5. 21K and 18K were selling at Dh434 and Dh372 per gram, respectively.

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In order to offset the impact of record high prices, gold jewellers in Dubai are considering introducing 14K jewellery. This will help boost sales at local jewellers.

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Spot gold was trading at $4,066.68 per ounce, up 1.23 per cent at 10 am UAE time. It touched an all-time high of $4,078 per ounce earlier due to US-China trade tensions and expectation of US Federal Reserve interest rate cuts.

Alex Kuptsikevich, chief market analyst at FxPro, said gold is outside the realm of politics.

“While currencies and securities depend on the actions of presidents and governments, precious metals do not. Therefore, political turmoil forces investors to use them as safe-haven assets. The impressive 52 per cent rally in gold started in April with the introduction of tariffs on America's Liberation Day. It continued due to the US government shutdown, the political crisis in France, and the change of leadership in Japan,” he said.

“The rise of gold above $4,000 per ounce is not only the result of the weakness of fiat currencies. There are tectonic shifts in the structure of investment portfolios and fears of financial crises due to government recklessness. The share of precious metals is growing both in speculators' assets and in the gold and foreign exchange reserves of central banks. The indicator has already exceeded the share of the euro. According to Eurizon Capital, if it equals the share of the US dollar, the price per ounce will soar to $8,500,” added Kuptsikevich.

• Dubai

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.