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

Yellow metal rates fell nearly more than one per cent on Friday, pushed down by a stronger dollar and high bond yields

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Published: Mon 24 Jun 2024, 9:38 AM

Gold prices rose in the UAE on the first trading day of the week after dropping Dh5 per gram on the weekend.

In the UAE, the 24K variant was trading Dh0.50 per gram higher at Dh281.5 at 9 am UAE time. Among the other precious metal variants, 22K opened at Dh260.75, 21K at Dh252.25 and 18K at Dh216.25 per gram. Globally, gold was trading at $2,325.26 per ounce, up 0.26 per cent.

Gold prices fell nearly more than one per cent on Friday, pushed down by a stronger dollar and high bond yields. As a result, gold prices in Dubai fell from Dh286 per gram to Dh281 on the weekend.

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Chris Weston, head of research at Pepperstone, said the big picture view on gold is that price is in wait-and-see mode, and assessing what comes next in US economic trends, US Federal Reserve policy and emerging markets’ central bank gold purchases.

“The clearly defined range of $2,430 to $2,285 reflects this patient stance, although, within the $145 range, there are moves being made that traders are capitalising on. Still, I expect we’ll see these levels hold until we get a more immediate need to reweight gold allocations higher in the broad portfolio,” said Weston.

He said the People’s Bank of China lowered purchases in April and then fully refrained from adding gold holdings to its total reserve in May. “Perhaps the PBoC want to see the price closer to $2,000 before resuming buying again – however, other emerging markets’ central banks are still in the mix, and adding gold to their reserves.”

For now, Weston said, gold goes quietly about its business, and for a new trend to develop may take time. “So for now we wait and trade the moves with the $2,430 to $2,285 range.”

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