Gold prices in Dubai extended their August rally on Monday, with 24K gold nearing AED 560 per gram. The expensive metal reached its highest level in more than three months as stronger international bullion prices supported the local market.
The 24K rate opened at AED 559.50 per gram, up AED 3.50 from the weekend. The 22K gold price stood at AED 518. Also, the 21K and 18K gold stood at AED 496.75 and AED 425.75 per gram. The 14K rate stood at AED332.
The surge in Dubai comes after gains in other global markets. The price of spot gold was $4,641.50 per ounce as at 9:10 am UAE time, a rise of 0.58%. According to Reuters, spot gold was priced at USD 4,649.08 per ounce, marking a three-month high. Gold also gained more than 5% last week. This takes place as investors respond to a weaker US dollar. Thus, changing expectations around US monetary policy.
A softer US dollar strengthened gold's appeal for investors holding other currencies. Lower US Treasury yields also supported demand for the non-yielding asset. Experts suggest, “The uncertainty in financial markets and concerns over economic and geopolitical developments are adding to gold's safe-haven appeal. At the same time, movements in Treasury yields and currency markets remain key factors for the metal's next move.”
Naeem Aslam, CIO of Zaye Capital Markets, said, “US President Donald Trump’s three-day pause on proposed 50% tariffs against Canada reduced one near-term source of economic friction. This could in turn soften demand for defensive assets in the short term.”
Samer Hasn, senior market analyst at xs.com, said, “Gold’s recovery comes amid a new phase in the market capital cycle, as the market witnesses a shift from high-yield US Treasury bonds toward alternative assets, amid uncertainty clouding the fixed income market.”
Also Read: Dubai Gold Rate Today: 24K Gold Climbs to Dh547 Per Gram, Up Dh60 in August