KT Photo: File
The upward trend in gold prices persisted in Dubai on Thursday, with 22K reaching Dh304 per gram during early trading, driven by global prices exceeding $2,700 per ounce. According to data from the Dubai Jewellery Group, the 24K variant of gold increased by Dh1.50 per gram to Dh328.50 per gram at the market opening on Thursday, compared to the previous day's close of Dh327 per gram. This brought the weekly gains for 24K to Dh9.50 per gram.
Among other variants, 22K rose to Dh303 per gram; 21K to Dh294.50; and 18K to Dh252.25. Globally, gold was trading at $2,714.27 per ounce, down 0.24 percent.
Fadi Al Kurdi, founder and CEO of FFA Kings, noted that the precious metal continues to benefit from its safe-haven status amid renewed geopolitical tensions in the Middle East and growing expectations of a US rate cut. "The November nonfarm payrolls data, which showed a significant increase, reinforced the view that the Federal Reserve is likely to cut interest rates this month. As a result, US Treasury bond yields remain low, creating a favorable environment for gold prices," said Al Kurdi.
"Geopolitical tensions in the Middle East have resurfaced as a major factor, especially following recent events in Syria, boosting demand for gold as a safe-haven asset. Any further regional developments could further enhance gold's appeal as a safe-haven asset," he added. Al Kurdi also mentioned that China's central bank resumed gold purchases for its reserves in November, ending a six-month hiatus and providing additional support for the metal.
"This is part of a broader trend of strong central bank demand for gold over the past two years. The combination of robust central bank buying, anticipated monetary policy easing, and ongoing geopolitical tensions indicates a strong outlook for gold prices in the near term," he concluded.
Source link: https://www.khaleejtimes.com
