Gold prices rise on first trading day of the week

Gold prices

Gold prices have seen a slight uptick on the first trading day of the week in the UAE. The 24K variant of gold was trading at Dh283.5 per gram, showing a modest increase compared to last week's close. Other variants like 22K, 21K, and 18K were also trading at different prices per gram. This rise comes after a significant dip last week, indicating a shift in market sentiment.

The spot gold price in international markets was also up slightly, trading at $2,342.09 per ounce. Market analysts attribute this increase to various factors, including recent statements from the US Federal Reserve. The Fed's minutes from its last meeting highlighted concerns about inflation, prompting investors to turn to gold as a safe-haven asset.

Mohamed Hashad, chief market strategist at Noor Capital, emphasized that gold prices have been influenced by the Fed's stance on inflation and monetary policy. The minutes revealed policymakers' readiness to consider tightening measures if inflationary pressures persist. Additionally, the decision to maintain interest rates at current levels reflects the Fed's cautious approach amid economic uncertainties.

Overall, the slight uptick in gold prices reflects ongoing market dynamics and investor sentiment. As economic conditions continue to evolve, gold remains a reliable asset for investors seeking stability in uncertain times.