Gold prices rise on first trading day of the week

gold prices

Gold prices in the UAE saw an uptick on the first trading day of the week, rebounding after a weekend decline of Dh5 per gram. At 9 am UAE time, 24K gold was trading at Dh281.5 per gram, up by Dh0.50. Other variants such as 22K, 21K, and 18K were priced at Dh260.75, Dh252.25, and Dh216.25 per gram, respectively. Globally, gold reached $2,325.26 per ounce, marking a 0.26% increase.

However, the previous Friday had witnessed a significant drop in gold prices by more than one per cent due to a stronger dollar and high bond yields. This decline in Dubai saw gold prices plummet from Dh286 to Dh281 per gram over the weekend.

Chris Weston, head of research at Pepperstone, analyzed the broader perspective on gold, describing its current stance as cautious while waiting to gauge future US economic trends, Federal Reserve policies, and gold purchases by central banks in emerging markets. He noted a price range between $2,430 and $2,285, indicating a patient market sentiment where traders are strategically navigating within this $145 range.

Weston highlighted the People's Bank of China's reduced gold purchases in April and their complete abstention in May, suggesting a possible preference for lower prices closer to $2,000 before resuming acquisitions. Meanwhile, other central banks in emerging markets continue to diversify their reserves with gold.

Looking ahead, Weston suggested that gold prices may continue trading within the established range until significant developments prompt a shift in market dynamics. He emphasized the current environment as one where traders monitor and capitalize on movements within the specified price bounds.