Dubai: Gold prices steady in early trade after strong Monday gains

The price of gold increased by Dh1.5 per gram on Monday thanks to the price of gold in the international market surpassing the $2,700 mark. The price of gold on the four markets opened up for business in Dubai saw a rise on the previous day as well as an increase on the days after. 

According to the figures collected by the Dubai Jewellers Association, the price of 24K gold was at Dh331, while 22K gold was Dh306.5, 21K was Dh296.75 and 18K was Dh254.5. The price of gold on international levels experienced an increase of $2,700 yesterday, allowing the price per gram to reach $1.5. 

At 9.10 am in the UAE timezone, spot gold hit the market enduring a growth of 0.46% and was trading at $2,734.11 per ounce. 

The demand for gold has been on the rise this year and sales increased mainly attributable to conflict in the Middle East, the appetite from China, and a decrease in interest from the United States Federal Reserve. The value of gold has appreciated by 37.5% over the course of the last 12 months.

According to Michael Brown, a Senior Research Strategist at Pepperstone, gold easily gains westwards $2,700 per ounce whilst breaking through its all-time high. According to Brown, “The rally still remains a head scratcher given that the traditional drivers of the yellow metal still seem to point in the other direction. However, current bullish momentum is severe enough that I would not think of fading the move just yet.” 

Recently, investor perceptions on the safe-haven Metal have also been swayed by the ambiguity surrounding the US elections. 

‘’One should also take into account that, in structural terms, the two candidates do not markedly differ. The difference is mostly on the extent of the regulation (Trump = deregulation, Harris = higher regulation, depending on the Congress composition), while the views on fiscal and monetary policies are quite similar. So, especially in the FX and FI markets, it is hard to envisage a protracted shift in the stance of whoever captures the White House – the theme will continue to be US exceptionalism for quite a while,’ Brown went on.

Stay updated! Gold prices hold steady in Dubai after strong Monday gains—track the latest trends and make informed investment decisions. To get the latest news subscribe to Just Dubai!