Gold prices surged by nearly Dh6 per gram in early trading on Thursday morning, as the precious metal climbed above $4,100 per ounce, reclaiming some of the losses from recent days.
According to the Dubai Jewellery Group, 24K gold was trading at Dh496.5 per gram on Thursday morning, an increase from Dh490.5 per gram at Wednesday’s market close.
Likewise, other gold variants saw an uptick at the market’s opening, with 22K, 21K, and 18K gold trading at Dh459.75, Dh440.75, and Dh377.75 per gram, respectively. Spot gold was at $4,131.28 per ounce, marking a two percent rise.
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Ipek Ozkardeskaya, a senior analyst at Swissquote, noted that Wednesday’s selloff in precious metals was largely due to the metals trading in significantly overbought market conditions, coupled with increased volatility.
“The gold volatility index has soared this October to its highest since March 2022. Historically, gold dropped 20 percent after such a volatility spike. Considering the current euphoria, crowded speculative long positions, and overbought conditions, a further price decline is likely, yet it does not jeopardize gold’s long-term portfolio role,” she explained.
Ozkardeskaya further stated that gold has become a preferred asset for global investors — from retail to institutions and central banks — who seek a hedge against sovereign debt issues, trade and geopolitical tensions, and inflation, which are now prevalent concerns.
