UAE: Gold prices rise on first trading day of the week

The 24K variant of the yellow metal was trading at Dh283.5 per gram in early trade in the country


Waheed Abbas

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Published: Mon 27 May 2024, 9:37 AM

Last updated: Mon 27 May 2024, 12:29 PM

Gold prices rose one dirham per gram at the opening of the markets on the first trading day of the week after losing more than Dh13 per gram last week.

In the UAE, the 24K variant of the yellow metal was trading at Dh283.5 per gram at 9 am local time on Monday as compared to last week’s close of Dh282.5 per gram. Among the other variants, 22K, 21K and 18K were trading at Dh262.5, Dh254.25 and Dh217.75 per gram, respectively.

The spot gold was trading at $2,342.09 per ounce, up 0.21 per cent at 9.10 am UAE time. Last week, the metal was dictated by the expectations of the US Federal Reserve’s decision about the interest rate cuts.

[Editor's Note: For real-time gold rates, click on the widget below or visit KT's dedicated Trading News page here.]

Mohamed Hashad, chief market strategist, Noor Capital, has said that the yellow metal prices have been dictated by the Federal Open Market Committee’s minutes, as fears of continued inflation persist, with gold benefiting as a reliable safe haven for investors’ money under these circumstances.

On Wednesday, the Fed issued the minutes of its last meeting held on April 30 and May 1, which shed light on monetary policy trends and overall economic conditions. The minutes also answered important questions related to the challenges facing financial markets in America and the world.

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“The minutes revealed that ‘several policymakers expressed their willingness to return to quantitative tightening if risks of rising inflation persist in one way or another, as long as this measure is appropriate.’ The meeting participants also saw that it was appropriate in May to ‘keep the interest rate at the current levels in the range of 5.25-5.50 per cent, the highest in 23 years’”, he said.


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