UAE: Gold prices jump Dh1 per gram in Dubai after dollar weakening

Analysts expect that the precious metal may witness volatility as the US Federal Reserve hinted that there could be another rate hike this year

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Waheed Abbas

Published: Thu 27 Jul 2023, 10:02 AM

Gold prices jumped Dh1 per gram to a one-week high in the UAE on Thursday morning in line with the increase in global prices due to the weakening of the dollar.

According to the Dubai Jewellery Group, the 24K was trading at Dh239.25 per gram on Thursday morning as against Dh238.25 when the markets closed on Wednesday. While 22K, 21K and 18K were trading at Dh221.50, Dh214.50, and Dh183.75 per gram, respectively, at 9am, UAE time.

The price of 24K was up by Dh1.50 per gram when compared to yesterday morning’s opening rates.

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Spot gold was up 0.21 per cent at $1,97.19 per ounce, as of 9.30am, UAE time.

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

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Analysts expect that the precious metal may witness volatility as the US Federal Reserve hinted that there could be another rate hike this year after a 25bps hike in rates to a range of 5.25 per cent to 5.5 per cent on Wednesday night. It was the highest interest rate in 22 years.

“The move was widely expected by market participants given recent projections and comments from various officials, including chairman Jerome Powell during the inter-meeting period,” said Diego Colman, contributing strategist, dailyFX.

Naeem Aslam, chief investment officer, Zaye Capital Markets, said the Fed has nodded in agreement with market expectations, and as a result, a symphony of harmony has resonated in the financial world.

“Like a perfectly orchestrated melody, Fed’s synchronised move stroked a chord of confidence among traders, and it is guiding them through the economic crescendo,” he said.

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Waheed Abbas

Published: Thu 27 Jul 2023, 10:02 AM

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