UAE: Gold prices shine at the start of the week, rise half-a-dirham per gram

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Gold prices rose in the UAE on Monday morning, climbing towards a one-month peak in early trade.

The Dubai Jewellery Group data showed the 24K price rising by half a dirham to Dh235.5 per gram at the opening of the markets as compared to last week’s close of Dh235 per gram. While 22K, 21K and 18K opened at Dh218.25, Dh211.25 and Dh181.0 per gram, respectively, at 9 am UAE time.

Spot gold gained 0.25 per cent to $1,945.47 per ounce by 9.33 am local time.

The surge in the yellow metal was supported by a pullback in the US dollar. Also, the expectations that the US central bank will take a pause from interest rate hikes supported the yellow metal.

Daniel Dubrovsky, contributing senior strategist at dailyFX, said the dollar broadly underperformed against its major counterparts this past week, with gold prices seeing a strong rally. A root cause of this was somewhat disappointing economic data from the world’s largest economy. That contributed to financial markets increasingly pricing in a less dovish Federal Reserve down the road.

“This pushed down Treasury yields, allowing anti-fiat gold to outperform,” he said, adding that gains in Wall Street, such as the Dow Jones and S&P 500, allowed the risk-sensitive currencies to outperform while demand faltered for the safe-haven dollar.