Dubai Gold prices moved higher on the morning of August 12. It extended gains from the previous week as global bullion prices continue to recover.
The 24K gold rate opened at AED 530.25 per gram, up AED 1.50 from August 11, with a closing price of AED 528.75. Other categories also recorded gains.
The 22K rate stood at AED 491 per gram. The 21K rate was AED 471, while 18K and 14K gold traded at AED 403.50 and AED 314.75 respectively.
Globally, spot gold was trading at $4,401.02 an ounce, up 0.45%. Silver also gained 0.87% to reach $65.34 an ounce.
Dubai’s 24K gold price has risen AED 36.5 per gram over the past week. The move offers some recovery for investors after a sharp decline in the precious metals market. Gold’s latest rebound has also come after the metal repeatedly held above the $4,000 level in global markets. Analysts see that resistance as an important sign of underlying demand.
Ole Hansen, head of commodities at Saxo Bank, said, “The most notable development across precious metals is not the strength of last week's rebound, but the sell-off that failed to materialise beforehand when gold repeatedly resisted selling attempts below $4,000, while silver found buyers below $57.”
Gold gained around 7% last week despite several pressures on the market. These included higher bond yields, a stronger US dollar and renewed concerns over US interest rates.
Hansen said gold’s ability to hold above $4,000 suggested that buyers were absorbing selling from investors who are more sensitive to interest rates.
The metal had suffered its biggest quarterly decline since 2013 in the second quarter. It has also fallen sharply from its January record above $5,500 an ounce. The recent recovery therefore comes after a key correction. Hansen cautioned that risks have not disappeared. Inflation remains a key concern for precious metals investors.
“The July Fed meeting reduced immediate tightening concerns, but three policymakers still wanted higher rates,“ he added.
Higher rates can put pressure on gold by making yield-generating assets more attractive. Investors will therefore continue to watch inflation, interest-rate expectations and currency movements as the bullion rally develops.
Also Read: Dubai Gold Price: 24K Gains AED3, 22K Moves Near AED500