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Dubai gold prices rise by nearly Dh10 per gram this week

Geopolitical tensions in the Middle East have re-emerged as a significant factor, particularly following recent developments in Syria

Published: Thu 12 Dec 2024, 9:41 AM

Updated: Thu 12 Dec 2024, 9:42 AM

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KT Photo: File

KT Photo: File

The gold price rally continued in Dubai on Thursday as 22K hit Dh304 per gram in early trade due to global prices surpassing $2,700 per ounce.

According to Dubai Jewellery Group data, the 24K variant of the yellow metal rose Dh1.50 per gram to Dh328.50 per gram at the opening of the markets on Thursday compared to last night’s close of Dh327 per gram. This took 24K’s gains to Dh9.50 per gram so far this week.

Among the other variants, 22K rose to Dh303 per gram; 21K to Dh294.50; and 18K to Dh252.25.

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

Globally, gold was trading at $2,714.27 per ounce, down 0.24 per cent.

Fadi Al Kurdi, founder and CEO of FFA Kings, said the precious metal continues to find support from its safe-haven appeal amid renewed geopolitical tensions in the Middle East, coupled with growing expectations of a US rate cut.

“The November nonfarm payrolls data, which showed a notable rise, bolstered the view that the Federal Reserve remains on track for interest rate cuts this month. Consequently, US Treasury bond yields remain subdued, creating a supportive environment for gold prices,” said Al Kurdi.

“Geopolitical tensions in the Middle East have re-emerged as a significant factor, particularly following recent developments in Syria, reinforcing safe-haven demand for gold. Any further regional developments could continue to strengthen gold's appeal as a safe-haven asset,” he said, adding that China's central bank resumed gold purchases for its reserves in November, ending a six-month pause and providing additional support for the yellow metal.

“This comes amid a broader trend of strong central bank demand for gold over the past two years. The combination of robust central bank buying, anticipated monetary policy easing, and ongoing geopolitical tensions suggests a well-supported outlook for gold prices in the near term,” he added.

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