UAE: Gold prices continue to rise, jump Dh4 per gram

Spot gold was trading at $2,391.93 per ounce at 9.10 am UAE time on Thursday

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by

Waheed Abbas

Published: Thu 16 May 2024, 9:29 AM

Last updated: Tue 11 Jun 2024, 9:44 AM

Gold prices continued their upward trend at the opening of the markets in UAE on Thursday, jumping Dh4 per gram in the past 24 hours.

The 24K variant of the yellow metal jumped Dh0.75 per gram to Dh289.5 at 9 am UAE time as against Dh288.75 at the close of the markets on Wednesday. Similarly, the other variants were also trading higher in early trade.

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According to Dubai Jewellery Group data, 22K, 21K and 18K were trading at Dh268.25, Dh259.5 and Dh222.5 per gram, respectively.

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

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Spot gold was trading at $2,391.93 per ounce at 9.10 am UAE time on Thursday as the US dollar and bond yields weakened on the increasing likelihood of rate cuts by the US Federal Reserve as early as September.

Fed Chair Jerome Powell mentioned on Tuesday that he expects US inflation to continue declining through 2024 and noted that it was unlikely that the central bank will need to raise interest rates again, which also positively influenced market sentiment.

Antonio Ernesto Di Giacomo, market analyst at xs.com, said despite certain obstacles for gold, such as high interest rates that increase the opportunity cost of investing in this metal, it has found support in safe-haven demand, especially amid growing geopolitical tensions in the Middle East. “However, easing these tensions, particularly between Iran and Israel, has left gold vulnerable to pressures stemming from interest rate expectations.”

Hani Abuagla, senior market analyst at XTB Mena, said gold prices benefited from a weaker US dollar and subdued Treasury yields.

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Waheed Abbas

Published: Thu 16 May 2024, 9:29 AM

Last updated: Tue 11 Jun 2024, 9:44 AM

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