Gold prices in the UAE started the week on a positive note, rising in early trade and approaching a one month peak . According to data from the Dubai Jewellery Group , the price of 24 k gold increased by half a dirham, reaching Dh 235.5 per gram at the market’s opening, compared to last week’s closing price of Dh 235 per gram. At 9 am UAE time , 22 k , 21 k, and 18 k gold opened at Dh 218.25 , Dh 211.25 , and Dh 181.0 per gram, respectively.
The rise in gold prices was supported by a weakening US dollar and expectations that the US central bank might pause its interest rate hikes. Daniel Dubrovsky, a contributing senior strategist at dailyFX, noted that the dollar performed poorly against major currencies, leading to a strong rally in gold prices. This was partially due to somewhat disappointing economic data from the world’s largest economy, causing financial markets to anticipate a less aggressive Federal Reserve policy. As a result, Treasury yields declined, making gold, often considered a hedge against currency devaluation, more attractive to investors. While Wall Street saw gains, demand for the safe-haven dollar waned, further contributing to the rise in gold prices.
