Gold prices in the UAE rose on Monday morning, nearing a one-month peak in early trade. The Dubai Jewellery Group data indicated that the 24K gold price increased by half a dirham to reach Dh235.5 per gram at the market’s opening, compared to the previous week’s closing price of Dh235 per gram. Meanwhile, 22K, 21K, and 18K gold opened at Dh218.25, Dh211.25, and Dh181.0 per gram, respectively, at 9 am UAE time.
Spot gold also saw a 0.25% increase, reaching $1,945.47 per ounce by 9:33 am local time.
The rise in gold prices was supported by a decline in the US dollar and expectations that the US central bank would temporarily halt interest rate hikes. This price increase was influenced by somewhat disappointing economic data from the US, leading to increased market expectations for a less dovish Federal Reserve in the future. Consequently, Treasury yields dropped, allowing gold, an anti-fiat asset, to outperform.
Daniel Dubrovsky, contributing senior strategist at dailyFX, noted that the US dollar performed poorly against major counterparts, contributing to gold’s strong rally. Additionally, Wall Street gains, particularly in the Dow Jones and S&P 500, led to outperformance by risk-sensitive currencies, while demand for the safe-haven dollar declined.
