UAE: Gold prices jump Dh4.5 per gram in early trade in Dubai

Gold prices jumped Dh4.5 per gram at the opening of the markets on Tuesday due to geopolitical concerns.

The Dubai Jewellery Group data showed 24K trading at Dh288.75 per gram on Tuesday morning as compared to Dh284.25 per gram at the close of the markets on Monday. While 22K, 21K and 18K also opened higher at Dh267.5, Dh259.0 and Dh222.0 per gram, respectively.

Globally, spot gold was trading at $2,385.97 per ounce at 9.45 am UAE time. It earlier reached $2,387.11 per ounce in the morning.

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Last week, Iran attacked Israel with 300 drones and missiles, raising the tension in the region and pushing investors to the safe-haven commodity.

World Gold Council on Tuesday said despite its high price, “we currently view gold to be under-owned, and unlike previous rallies this time it does not look like as ‘toppy’”

“The fundamentals underpinning the current rally include growing geopolitical risk, steady central bank buying and resilient demand for jewellery and bars and coins,” the Council said.

“The rally that started in early March left some commentators scratching their heads as to the cause. Our Gold Return Attribution Model (GRAM) suggested Risk and Momentum factors were behind the move higher. Particularly instrumental was gold’s implied volatility, which shot up during March — as it did during September 2022, March 2023 and October 2023, although this time it was not accompanied by a rise in bonds’ implied volatility and therefore more suggestive of a gold-specific punt,” said the Council.

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