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Dubai: Gold prices rise in early trade, 22K trades below Dh300 per gram

Globally, spot gold was trading at $2,652.35 per ounce, up 0.13 per cent

Published: Mon 16 Dec 2024, 10:00 AM

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Gold prices rose at the opening of the markets in Dubai on Monday after prices fell sharply over the weekend.

The Dubai Jewellery Group data showed 24K selling at Dh321.25 per gram, up from Dh320.75 per gram at the close of the markets over the weekend.

Among the other variants, 22K, 21K and 18K were selling at Dh297.5, Dh288.0 and Dh246.75 per gram, respectively.

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The 22K variant surpassed the Dh300 per gram mark last week as prices rallied in the first few days of the week before losing steam.

Globally, spot gold was trading at $2,652.35 per ounce, up 0.13 per cent.

Terence Hove, financial markets strategist consultant at Exness, said gold prices declined over the weekend as the asset continues to see pressure from rebounding Treasury yields and a strong US dollar while market participants await Federal Reserve monetary policy meeting.

“While markets expect a 25-basis-point rate cut in December, inflation data has raised concerns about a potential Federal Reserve pause in early 2025, especially as progress toward the 2 per cent inflation target appears stalled,” said Hove.

Recent dovish measures by other major central banks, including rate cuts from the Swiss National Bank, European Central Bank, and Bank of Canada, along with the Bank of Japan’s stance to maintain current rates, have had little immediate impact on gold prices ahead of the Fed meeting. However, these policy shifts could influence gold’s performance in the longer term.

“Despite current pressures, gold is supported by ongoing geopolitical tensions in Eastern Europe and unrest in the Middle East, as well as concerns over the US President-elect Donald Trump’s proposed tariff plans. Additionally, strong central bank demand could persist through 2025, providing substantial medium-term support,” added Hove.

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