Dubai: Gold jewellery prices in Dubai soared to their highest levels this month, shortly before the Dhanteras and Diwali festivities could kick off.
The price of 24K climbed to Dh157.75 per gram as of 11.20am, up by Dh2.25 from a week ago and Dh2.75 from the beginning of the month. Other jewellery pieces have gotten pricier as well, with 22K selling at Dh148.25, 21K at Dh141.50 and 18K at Dh121.25.
Gold climbed to hit more than $1,300 an ounce last week. It surged further on Monday to $1,303.49 an ounce, up by 0.05 per cent.
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Fans of the precious metal often rush to snap up jewellery during the festivals of Dhanteras and Diwali as they are considered auspicious occasions to spend money on gold.
Retailers in Dubai have already seen an increase in gold buying activity, with some traders reporting their sales have gone "through the roof."
In Kitco’s gold survey, the majority of analysts in Main Street bet on the yellow metal to post further gains this week.
The bullion has been performing well in recent days, as geopolitical concerns have driven investors to safe-haven assets and caused the US dollar to soften. The recently released minutes from the US Federal Reserve meeting also provided support for gold.
“A dovish Fed and weak inflation data supported gold. Geopolitical risks also continued to play its part in adding support,” noted Ole Hansen of Saxo Bank.
“The Fed put out a rather sober inflation outlook as they tried to find answers to why a tight labour market had yet to stoke any pressure on prices,” said Hansen.
“The conclusion from those minutes is that the Fed is not in any hurry to up its measured pace of rate hikes.”
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