On Monday morning, gold prices in the UAE surged, approaching a one-month high during early trade. Data from the Dubai Jewellery Group revealed that the 24K gold price increased by half a dirham, reaching Dh235.5 per gram at the market’s opening, compared to last week’s closing price of Dh235 per gram.
At 9 am UAE time, 22K, 21K, and 18K gold opened at Dh218.25, Dh211.25, and Dh181.0 per gram, respectively. Concurrently, spot gold rose by 0.25%, reaching $1,945.47 per ounce by 9:33 am local time.
The upsurge in gold’s value was bolstered by a decline in the US dollar and expectations that the US central bank would pause its interest rate hikes, lending further support to the precious metal.
Daniel Dubrovsky, a contributing senior strategist at dailyFX, noted that the US dollar had generally underperformed against major currencies in the previous week, leading to a robust rally in gold prices.
This was partly due to somewhat disappointing economic data from the world’s largest economy, causing financial markets to increasingly anticipate a less dovish stance from the Federal Reserve in the future.
Dubrovsky also observed that the decline in Treasury yields had enabled gold, seen as an anti-fiat asset, to outperform. Simultaneously, as Wall Street indices like the Dow Jones and S&P 500 gained, risk-sensitive currencies performed well while demand for the safe-haven US dollar waned.