Gold rises over 1% to $1,813; 24K price increases to Dh219 in Dubai

Dubai - As a result of increase in global rates, precious metal prices in Dubai also shot up on Tuesday.


Waheed Abbas

Published: Tue 6 Jul 2021, 5:28 PM

Gold prices rose more than one per cent on Tuesday, crossing the $1,800 threshold as the US dollar retreated from its three-month high reached last week.

Spot gold price increased 1.24 per cent to $1,813.56 an ounce at 4.45pm UAE time. As a result of increase in global rates, precious metal prices in Dubai also shot up on Tuesday.

The Dubai Gold and Jewellery Group data showed 24K price jumping from Dh216.5 per gram on Monday morning to Dh219.0 on Tuesday afternoon.

Among the other variants of the precious metal, 22K price rose to Dh205.75 per gram; 21K to Dh196.25; and 18K to Dh168.25 on Tuesday afternoon.

Naeem Aslam, chief market analyst at Ava Trade, said traders know that the gold price needs to move above the $1,800 price level in order to mitigate any bearish threats.

“The precious metal price is holding on to its gains, but we do see evidence of gold traders picking up more strength. A lot of the current strength in the gold price is primarily due to weakness in the dollar index because the US NFP number wasn’t overwhelming. This has made traders believe that there are fewer reasons for the Fed to be overly optimistic about the US economy, and perhaps the best days for the US economy are already over,” said Aslam.

“From here onwards, we are likely to see more gradual growth, which will give less reason for the Fed to be highly optimistic about the US economy. The fact that we may not see the same kind of astonishing numbers also means that inflation concerns that have been overblown may begin to vanish as well,” he added.

“Gold appears to be drawing strength from a weaker dollar,” said Lukman Otunuga, analyst at FXTM.

The dollar index, which measures the greenback against a basket of even currencies, fell 0.14 per cent to 92.341 units, far from the three-month high it reached last week.

More news from UAE