Dubai gold prices jump again, 24K back at late-May levels
24K rises Dh3.50 on Friday and has gained Dh62 since August 3
Dubai: Gold prices climbed again in Dubai on Friday, extending a strong run that has pushed local rates back to levels last seen towards the end of May.
At 8.45am, 24-karat gold stood at Dh547.50, up Dh3.50 from Dh544 on Thursday, while 22-karat gold rose Dh3.25 to Dh507 from Dh503.75.
The increase leaves jewellery buyers facing considerably higher rates than they did at the start of the month. The 24K rate has gained Dh62, or about 12.8%, from Dh485.50 on August 3, while 22K has risen Dh57.50 from Dh449.50 over the same period.
Back at late-May levels
Friday's move takes 24K gold back to the Dh547.50 level recorded on May 30 and May 31. It is now only Dh2.50 below the Dh550 recorded on May 29, the highest level shown in the three-month price data.
The recent rise has gathered pace this week. The 24K rate stood at Dh526 on August 18 before climbing to Dh540.75 on Wednesday, Dh544 on Thursday and Dh547.50 on Friday.
The movement means 24K has added Dh21.50 in just three days from Tuesday's level, while 22K has risen from Dh487 to Dh507 over the same period.
Global gold heads for third weekly gain
The rise in Dubai followed another strong session for the international gold market, with bullion trading around $4,530 an ounce and heading for a third consecutive weekly gain. Gold was on course to finish the week more than 3% higher.
The US Treasury's unexpected increase in buybacks of long-dated government debt helped lift bullion after the move pushed Treasury yields and the dollar lower on Wednesday.
Treasury Secretary Scott Bessent said on Thursday that he was prepared to expand buybacks of costlier debt and indicated that the administration would soon unveil a fiscal initiative aimed at addressing the highest US borrowing costs in years.
Concerns surrounding rising US government debt have been one of the factors supporting gold during its multi-year rally, with investors turning to the metal as an alternative safe haven.
Gold has gained around 11% globally so far this month and has remained above $4,000 an ounce since mid-July. Despite the latest recovery, bullion remains around 15% below levels recorded before the US-Iran conflict began in late February.
- With inputs from Bloomberg.
