Dubai: UAE gold jewellery prices have just gone up to their highest level in about three months, and buyers are likely to shell out more when they hit the shops over the next few days.
The price of 24-karat gold jumped to Dh149.75 per gram on Thursday morning, rising by Dh1 per gram since the beginning of the week and nearly Dh6 in only less than a month. The highest price the precious metal has reached in recent months was Dh150.25 per gram, recorded last July 17.
Industry analysts have predicted the price of 24K to climb further to Dh150 per gram, as gold has been enjoying upbeat demand in the build-up to Diwali.
Investors have also been running to the bullion for cover amid a slide in global equities. Stocks in China, Europe, as well as in the United States have fallen, lending support to the precious metal.
Gold prices last October 1:
Gold prices today, October 25:
Source: Dubai Gold and Jewellery Group
Spot gold hit $1,237.04 an ounce as of 7:57am today, not too far from Tuesday’s price of $1,239.68, the highest since July 17, according to Reuters.
“After the massive sell-off in global equities, investors are looking for a safe-haven shelter. They are starting to diversify and look at bullion as a means of value maintenance, with no end in sight appearing for the bear market,” Benjamin Lu, commodities analyst with Philip Futures, told the news agency.
Gold’s prices will again move before the end of the week and the bullion’s strength will hinge on a number of developments, including geopolitical risks, economic data from the United States and monetary policy decisions in Europe and Canada.
Karim Merchant, group CEO and managing director of Pure Gold Group had predicted 24K gold prices in UAE to be in the range of Dh145 to Dh150 per gram.
“Investors will be focusing on Friday’s data on US third quarter growth, while monetary policy decisions from the European Central Bank and Bank of Canada will also be closely watched,” noted Vijaay Valecha, chief market analyst at Century Financial.
“Investors will also be getting an update on the health of the US housing market, which has been hit by rising borrowing costs as a result of Fed rate hikes, with the release of figures on new and pending home sales. Technically, gold prices are likely to remain range bound, with resistance at $1232 - $1235, whereas support is likely to come around $1218.”