Tension in the Middle East has further bolstered gold
Gold prices jumped nearly Dh2 per gram at the opening of the markets in UAE on Monday as investors rushed to safe-haven metal after the Iran-Israel military conflict.
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According to Dubai Jewellery Group data, the 24K was trading at Dh285.5 per gram on Monday morning as compared to last week’s close of Dh283.75, up Dh1.75 per gram. Among the other variants, 22K opened higher at Dh264.25, 21K at Dh256.0 and 18K at Dh219.25 per gram.
Globally, spot gold was trading at $2,356.3 per ounce, up 0.5 per cent as investors.
Iran on early Sunday launched an attack against Israel with 300 drones and missiles, prompting investors to take safe bets and buy safe-haven metal.
Diego Colman, a contributing strategist at dailyFX, said the yellow metal increased in seven of the past eight weeks, rallying more than 17 per cent since mid-February and shrugging off extremely overbought conditions.
He added that the precious metal gained despite the strength of the US dollar and the hawkish repricing of the US interest rate expectations amidst resilient economic activity. “The typical negative relationship between gold and US real yields has broken down and puzzling fundamental traders,” Colman said.
“Tension in the Middle East has further bolstered gold, although these risks have intensified only recently and haven’t been a predominant theme for an extended period,” added Colman.
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Waheed Abbas is Assistant Editor, covering real estate, aviation and other business stories that directly affect the lives of UAE consumers. He frequently reports human interest stories, too.