Dubai: Although gold prices dipped slightly on Thursday, futures - indicative of near-term prices - are pointing towards higher prices in the days to come, which makes it ideal for potential gold buyers in the UAE to 'buy the dip' in prices now.
In the UAE, the cost of 24-karat gold was at Dh235.25 per gram on Monday, down from Dh235.75 on Wednesday. Check the latest gold rates here. Meanwhile, the price of 22-karat gold fell to Dh221 per gram, 21-karat to Dh210.75 and 18-karat to Dh180.75 in the UAE.
Gold prices dipped in range-bound trading on Monday, as a stronger US dollar countered support from uncertainty around the Ukraine war. Global spot gold price was down 0.2 per cent at $1,942.85 per ounce, after hitting a more than one-week high of $1,949.32 earlier in the day. Gold futures were up 0.7 per cent at $1,959.
"Gold is still trading sideways and that reflects the conflicting currents that we're looking at. There's still real concerns about the geopolitical outlook and the potential for escalation in Ukraine," said Michael McCarthy, chief strategy officer at Tiger Brokers, Australia.
"At the same time, a stronger US dollar and potential for higher interest rates around the globe are keeping a lid on enthusiasm for gold." The US dollar index gained ground, bolstered by US 10-year government bond yields hitting a more than three-year high and prospects of aggressive rate hikes by the US central bank to contain soaring inflation.
A stronger dollar makes gold less attractive for other currency holders, while higher US interest rates and yields increase the opportunity cost of holding bullion, which is also used as a hedge against inflationary pressures. Ukraine's armed forces braced on Monday for a new Russian offensive as powerful explosions rocked cities in the south and east, lending some support to the safe-haven metal.
