UAE gold prices jump Dh5, but buyers still save Dh150 on 10 grams
Dubai 24K gained Dh5 on Tuesday but remains Dh15 below its July peak
Dubai: Dubai gold prices moved higher on Tuesday morning. The 24-karat variety stood at Dh488 per gram at 9.44am, up Dh5 from Dh483 on Monday. The 22-karat variety rose by Dh4.75 to Dh452 per gram, compared with Dh447.25 a day earlier.
Tuesday’s increase lifted prices further away from the monthly low recorded last week, although both varieties remain well below their July peaks.
Get updated faster and for FREE: Download the Gulf News app now - simply click here.
Prices remain below July high
The 24-karat rate began the month at Dh489.75 before climbing to Dh503 on July 4 and July 5, its highest level so far this month.
Prices then moved lower, briefly recovering to Dh497.25 on July 9 before dropping to Dh481.50 on July 16 and July 17. Tuesday’s rate is Dh6.50 above that low but remains Dh15 below the monthly peak.
The 22-karat variety followed a similar pattern, rising from Dh453.50 at the beginning of July to a high of Dh466 on July 4 and July 5.
It later fell to Dh446 on July 16 and July 17 before recovering to Dh452 on Tuesday. The current price is Dh6 above the July low and Dh14 below the month’s highest level.
Buyers purchasing 10 grams of 24-karat gold would pay Dh50 more than they would have on Monday, although the same purchase would still cost Dh150 less than it did at the July peak.
Global gold rises above $4,000
Gold also gained in international markets as traders bought bullion following its recent decline and continued to track developments in the Middle East.
Bullion rose by as much as 1.5% to trade near $4,068 an ounce, marking its strongest level in more than two weeks. Oil prices edged lower after two sessions of gains, even after the United States launched another round of strikes on Iranian targets.
The latest escalation has widened after Yemen’s Iran-backed Houthi group said it would impose a maritime blockade on Saudi Arabia. A military coalition led by the kingdom said it had taken measures to protect vessels operating in the Red Sea.
Interest rates remain a risk
The conflict has pushed up the prices of commodities used in manufacturing and food production, leaving traders to assess the effect of higher energy costs on inflation.
Rising inflation could keep borrowing costs elevated or increase the possibility of further interest rate action by the US Federal Reserve. Higher rates tend to weigh on gold because the metal does not pay interest.
Soft US economic data and continued geopolitical uncertainty have provided some support, with gold attracting buyers after falling near the closely watched $4,000-an-ounce level.
- With inputs from Bloomberg.
