Gold prices in the UAE witnessed a notable surge on Monday morning, surpassing one dirham per gram, following the global uptrend that pushed precious metal rates above $2,000 per ounce.
According to data from the Dubai Jewellery Group, 24K gold was trading at Dh243.75 per gram at the market opening, reflecting an increase of Dh1.25 compared to the previous week’s close of Dh242.5 per gram.
Precious Metal Variants Follow Suit:
Precious metals also increased, with 22K gold trading at Dh225.75, 21K at Dh218.5, and 18K at Dh187.25. The positive momentum in global gold prices contributed to the surge in various gold categories in the UAE market.
At 9:23 am UAE time, spot gold recorded a 0.55% increase, reaching $2,013.55 per ounce.
The rise in global gold prices is attributed to ongoing support from buyers and the weakening US dollar, providing stability to gold prices.
Factors Influencing Gold Prices:
Analysts, such as Zain Vawda from dailyFX, noted that gold prices experienced a positive trend last week, supported by buyers and a struggling US dollar.
However, challenges remain, as gold faced resistance above the $2,000 per ounce mark, making the precious metal susceptible to market dynamics.
Vawda highlighted upcoming events, including ISM data and the US Federal Reserve’s Core PCE data, as factors that could induce volatility in the US dollar and subsequently impact gold prices.
The market’s anticipation of rate cuts in 2024 and potential signs of a cooling job market are expected to influence short bursts of buying and selling in the coming week.
