Gold prices have maintained their upward momentum, surpassing Dh500 per gram with an increase of over Dh21 this week.
According to the Dubai Jewellery Group, 24K gold opened at Dh507.25 per gram on Thursday, up from Dh504.75 per gram at the previous market close. This marks the first time in nearly a month that the precious metal has crossed the Dh500 threshold, following a period of easing due to profit-taking. The price has increased by Dh21.5 per gram so far this week.
Other gold variants like 22K, 21K, and 18K were priced at Dh469.75, Dh450.25, and Dh386 per gram, respectively. Spot gold prices exceeded the $4,200 mark, trading at $4,215.61 per ounce on Thursday morning. Technically, gold has surpassed key resistance levels at around $4,150, consolidating above $4,200.
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Antonio Di Giacomo, a senior market analyst at xs.com, noted that gold prices are stable near the $4,200 per ounce level, driven by the weakened US dollar and a renewed demand for safe-haven assets.
“Despite an initial rebound, the dollar weakened as investors grew optimistic about a resolution to the federal government funding impasse by Congress this week. This would also allow for the release of key economic data, such as inflation and employment reports, which the Federal Reserve considers before its next monetary policy decision,” he explained.
Analysts predict a volatile week ahead, with investors keenly observing any indications on future interest rates.
UBS and DailyFX analysts suggest that gold’s fundamentals remain strong, supported by central bank demand, global inflation, and the continued weakness of the dollar. Additionally, negative real interest rates and expectations of a cautious Federal Reserve are prompting gold purchases as a hedge against uncertainty.
