Dubai: Gold jewellery prices in the UAE have risen to their highest level since August 2016 and are headed for another climb this week, as the bullion is poised to continue to ride on the back of a weak US dollar.
As of Sunday, 9.43am, 24-karat was retailing at Dh163.50 per gram, up by Dh2.25 per gram in nearly a week.
UAE consumers have been spending more out of their pockets on gold jewellery since the beginning of the year and so far, the value of 24K alone has risen by Dh.4.50 per gram since early this month.
The price of 22K also went up to Dh153.50 per gram, while 21K and 18K rose to Dh146.50 and Dh125.50, respectively.
The price of gold on Thursday jumped to $1,366.07 an ounce, the highest level the precious metal has reached since August 2016, after the US greenback slumped to a three-year low. And it looks like the trend will continue this week.
In a survey conducted by Kitco among gold market professionals, more than half (52 per cent) of respondents in Wall Street said they are bullish about the precious metal this week. About 62 per cent of market professionals in Main Street shared the same view.
The US dollar fell significantly last week after US Treasury Secretary Steven Mnuchin said that a weak American currency would be good for the economy.
Ole Hansen of Saxo Bank said the biggest driver for gold prices remains the US dollar, which for the past seven weeks, has provided an almost constant level of support as it continued to soften.
"Gold continued its week-long rally and despite the need to consolidate, it managed to climb to the key area of resistance between $1,357 and $1,380 an ounce. The vairous factors normally determining the direction of gold and precious metals in general are currently stacked in favour of the metal at this stage," Hansen said.
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