Bargains await UAE residents as gold prices fall to cheapest in over three weeks
Precious metal hits lowest point in over 3 weeks as US dollar rises
Dubai: Gold fans in Dubai could bag some great deals at the souks and jewellery stores today, as prices have just dropped to their lowest level in almost one month.
The latest price list from the Dubai Gold and Jewellery Group, an association of gold retailers, showed that rates have gotten cheaper by more than Dh5 per gram compared to the peak prices in February.
Gold’s latest weakness has been a result of the strengthening of the US dollar. The American currency surged to its highest point in two weeks on Tuesday.
As of 9.30am, 24-karat (24k) gold was selling at Dh157 per gram, down from Dh162.50 last February 20. Gold was also a lot pricier a few days ago, trading at Dh159.75 per gram last March 21.
Jewelleries in other purities have also gotten more affordable, with 22K now selling at Dh147.25, 21K at Dh140.75 and 18K at Dh120.50 per gram.
According to Vijay Valecha, today’s gold rates are near the highs made in March 7, 2019.
"Gold is currently trading near one-month lows in the international market as the US dollar rallied strongly to the highs made in March, 2019, » said Valecha.
"This is not surprising, as gold has a very strong negative correlation with the US dollar. Nevertheless, gold is currently trading near its support in the $1,276-$1,280 zone and the zone has not broken down since the beginning of this year," he added.
Spot gold touched $1,285.80 an ounce early today before settling at $1,286.85 an ounce by 7.32 am.
“Concerns we saw emerge in the past few weeks around economic growth has certainly eased and that shift (in sentiment) in the past day or two resulted in little bit of selling in gold market,” ANZ analyst Daniel Hynes was quoted as saying by Reuters.