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Dubai gold prices spike on weak US dollar, North Korean worries

Price of 24K closing in on Dh160 per gram, a far cry from prices in the beginning of the year

Image Credit: Agencies
When the US dollar weakens, the value of gold tends to go up.

Dubai: Gold jewellery prices in Dubai have hit their highest level this year, as the bullion rallied on weak US dollar and North Korean worries.

Spot gold finally managed to breach the $1,300 level, causing precious metal prices in Dubai to shoot up on Tuesday, gaining a massive boost of Dh20 per gram since the beginning of the year.

The bullion was trading at $1,321.04 an ounce by 0940 GMT after hitting $1,325.94, its highest since November 9, according to Reuters.

In Dubai, 24K retailed at Dh159.50 per gram as of Tuesday morning, up by Dh20 per gram compared to January 1 this year. In just one week, the value of 24K gold jewellery went up by Dh3.50 per gram.

Commodities expert Ole Hansen of Saxo Bank said the bullion’s rally is due to the greenback’s weakness against the euro and Japanese yen. The European currency has surged to $1.20 for the first time since the beginning of the year.

Gold has also been supported by reports that North Korea had fired a missile over Japan, as well as Donald Trump’s pronouncements.

 “Gold has continued its ascent. Some of this outperformance – which has also been seen against silver, its precious metal sister – has been driven by North Korean worries, President Trump and the stock market wobble,” Hansen wrote in his analysis on Tuesday.

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