UAE: Gold prices jump to nearly 3-week high in Dubai

The CPI rose 0.3 per cent last month after advancing 0.4 per cent in March and February, suggesting that inflation resumed its downward trend

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Waheed Abbas

Published: Wed 15 May 2024, 6:23 PM

Last updated: Fri 24 May 2024, 10:06 AM

Gold prices jumped in the UAE on Wednesday afternoon, rising by more than two dirhams per gram to a nearly three-week high after the US consumer price index rose less than expected in April.

According to Dubai Jewellery Group data, the 24K variant of the yellow metal was trading at Dh287.25 per gram on Wednesday afternoon as compared to Dh285.25 in the early morning trade. While 22K, 21K and 18K were trading higher at Dh266.0, Dh257.5 and Dh2220.75 per gram, respectively.

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Spot gold was trading at $2,367.29 per ounce, before slipping to $2,354.8 per ounce at 6pm.

The CPI rose 0.3 per cent last month after advancing 0.4 per cent in March and February, suggesting that inflation resumed its downward trend at the start of the second quarter.

Mahmoud Alkudsi, senior market analyst at ADSS, said the CPI data underscores the persistent nature of inflation, aligning with the heightened caution signalled by the Fed. While the Fed is seeking reassurance in softer economic indicators, the April figures potentially pave the way for forthcoming policy adjustments.

He said: “The crucial question is now whether these CPI numbers are still perceived as anomalies, or is there a consensus forming that they represent a broader resurgence of the cost-of-living crisis. In response to this data, bond yields decreased, the dollar weakened, and risk assets experienced further gains, buoyed by the prospect of a rate cut in Q3".

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Waheed Abbas

Published: Wed 15 May 2024, 6:23 PM

Last updated: Fri 24 May 2024, 10:06 AM

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