Gold jewellery buyers Image Credit: Gulf News archives

Dubai: Gold jewellery prices in Dubai on Monday broke out to a new high in weeks, and precious metal fans can expect to spend a few dirhams more per gram if they hit the shops today.

The price of 24-karat gold climbed to Dh160.25 per gram as of 11am, up by more than Dh4 compared to the prices about two months ago.

Other jewellery pieces have likewise gotten pricier, with the 22K now priced at Dh150.50 per gram and the 21K and 18K selling for Dh143.75 and Dh123.25, respectively, according to the Dubai Gold and Jewellery Group.

The bullion’s latest rally has been due to a weaker US dollar and expectations that the United States and China are about to enter an agreement.

The two countries are scheduled to meet in Washington this week to agree on a deal that could end their trade conflict.

As of 9:14 am, spot gold gained 0.1 per cent to $1,326.1 an ounce, just below a nine-month peak of $1,326.30 an ounce in January 31, according to Reuters.

The latest price is the highest the precious metal has achieved in more than two weeks. Analysts had earlier predicted the bullion to increase in value this year, hitting the $1,400 level by the end of 2019.

“Alleviation of risks around the trade talks has certainly benefited the markets,” ANZ analyst Daniel Hynes, was quoted by Reuters as saying. He added that signs of progress in the discussions had reduced appetite for the dollar, which has been supporting gold.

The dollar was marginally weaker on Monday, as increasing expectations of a US-Sino trade deal led investors to shift away from the safety of the greenback, which had been the preferred safe-haven during the trade dispute. (with Reuters)