Dubai: The price of gold soared to its highest level in four months on Monday, triggering significant increases in the UAE’s jewellery sector.
As of early trade, the bullion climbed to $1,344.74 an ounce, the highest since September.
Popular ornaments in Dubai have gotten even pricier, with 24-karat gold now retailing at Dh162.50 per gram, up by nearly Dh9 per gram from one of its lowest rates of Dh153.75 late last year.
The price of 22K went up to Dh152.75 per gram, while 21K and 18K rose to Dh145.75 and Dh125, respectively.
Gold has been on an upward trend since the beginning of the year and the support is partly coming from a weak US dollar. Last Wednesday, it hit its peak since mid-September to $1,327.54 an ounce.
Vijay Valecha, chief market analyst at Century Financial, said today's price is the highest gold has reached in the last 19 weeks.
"Gold prices continue to accelerate due to the dollar index making new lows. The dollar index is at its lowest price since December 2014, Valecha told Gulf News.
"Gold would continue being a good buy at any minor corrections."
Last week's rise had also something to do with the weak US dollar.
“News hit the wire that Chinese officials would pull back purchasing US treasuries in an attempt to diversify from [the US dollar.] Even though the markets corrected soon after, what we anticipate now is a reply from [US president Donald Trump],” Valecha said in a note earlier.
“A massive influx of Chinese interest was seen in the US treasuries in 2017 rising almost 16.5 per cent. This will have a negative impact on the treasury prices and yields will increase as markets worry about liquidity in the bond market.”
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