Dubai: Gold prices in the UAE have hit their highest level in a month, with the bullion nearly touching the $1,300 level due to a soft US dollar.
The price of 24-karat gold stood at Dh156.75 per gram on Sunday, up by Dh3 per gram from the beginning of the month and Dh1 from Thursday.
Spot gold rose to as much as $1,297.10 on Thursday, the highest since October 16, when the bullion rallied to $1,306.04 an ounce and 24K climbed to Dh157.75 per gram.
Gold buyers in the UAE will also have to spend more on other jewellery pieces if they buy today, with the price of 22K retailing at Dh147.25 per gram, up from Dh145.25 per gram last Thursday.
The prices of 21K and 18K also jumped to Dh140.50 and Dh120.25 per gram, respectively.
Analysts are expecting the trend to continue this week. In Kitco’s gold survey, more than half of professionals in Wall Street and Main Street are betting on the yellow metal to increase again over the next few days.
Gold’s recent rise has been attributed to the softening of the US dollar amid the uncertainty around the proposed overhaul of the American tax code.
Legislators in the US are pushing to pass a landmark bill that will see taxes cut by more than $1.4 trillion over a ten-year period, but the plan has yet to gain full support.
“Sentiment has turned sharply against the dollar, which may finally allow gold to test key medium-term resistance at $1,310 early [this] week,” Tai Wong, head of base and precious metals trading at BMO Capital Market, was quoted by Reuters as saying.
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