Gold prices in Dubai jump Dh8 as 24K nears Dh550 per gram
Gold prices surged Dh8 per gram reaching almost Dh550 in Dubai on Tuesday morning.
Dubai Jewellery Group quoted the price of 24K gold trading at Dh549. 75 per gram, up from Dh541. 75, on the previous market close.
Other variants of the precious metal also pushed higher early on, with 22K, 21K, 18K and 14K trading at Dh509. 25, Dh488. 25, Dh418. 50, and Dh326. 50 per gram, respectively.
Spot gold was trading at $ 4,559.18 per ounce, up by 0.69 per cent. Silver gained 2.16 per cent to $71.99 an ounce. Precious metals rose on hopes for a de-escalation in the conflict between the US, Israel and Iran across the Middle East.
Critical Metals chief executiveTony Sage said gold prices advanced for the week's start, stabilizing after a recent corrective phase.
“The resilience of geopolitical risk in the Middle East, however, perhaps could provide support for safe-haven demand coming not least after the metal’s downturn earlier this month and fuelled dip-buying. Downside recession risks from high oil prices emerging will likely add incremental safe haven defensive positioning, price support to bullion in the face of the rate environment.
“Gold, meanwhile, may stay under pressure in the near term amid still-running risks for more central-bank selling (following Turkey’s recent selloff) and likely gains for Treasury yields and the dollar. ETF flows have been negative overall and could continue to pressure the market if this trend continues,” he said.
Going forward, Sage said the path of gold is most likely to rely on updates coming from the Middle East and inflation expectations as well as shifts in monetary policy, considering how persistently high oil prices could affect the broader world economy.
“The US economic data could also affect sentiment and drive gold prices as it shapes monetary policy expectations in the near future,” he said.
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