UAE: Gold prices jump over Dh1 per gram in Dubai as it crosses $2,000 mark

Gold prices enjoyed a positive last week as buyers kept the metal supported, with a struggling US dollar helping as well

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Photo: Reuters file
by

Waheed Abbas

Published: Mon 27 Nov 2023, 9:41 AM

Gold prices jumped by more than one dirham per gram in the UAE on Monday morning as global precious metal prices rose above $2,000 an ounce.

According to Dubai Jewellery Group data, the 24K was trading at Dh243.75 per gram at the opening of the markets on Monday as compared to last week’s close of Dh242.5 per gram, up by Dh1.25.

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Similarly, the variants of the precious metals also opened higher with 22K trading at Dh225.75, 21K at Dh218.5 and 18K at Dh187.25.

Spot gold rose 0.55 per cent to $2,013.55 per ounce by 9.23 am UAE time.

According to Zain Vawda, an analyst at dailyFX, said gold prices enjoyed a positive last week as buyers kept the metal supported, with a struggling US dollar helping as well.

“Both gold and silver threatened a selloff, but buyers kept prices steady for the majority of what was a shortened trading week. Looking at gold though and the failure to find acceptance above the $2,000/oz mark could leave the precious metal vulnerable,” he said.

Vawda added that the key events that could stoke volatility in the US dollar and thus in gold prices are likely to be the ISM data and of course the US Federal Reserve’s preferred gauge of inflation, the Core PCE data.

“Markets have bought into the idea of rate cuts in 2024 with around 90bps currently priced in. I have mixed feelings on what to expect yet given that I do believe demand will face constraints as consumers feel the heat but I would prefer to see some signs that the job market is cooling.”

Vawda expects short bursts of buying and selling following data releases to continue this week.

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Waheed Abbas

Published: Mon 27 Nov 2023, 9:41 AM

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