Gold prices edged up in Dubai as the markets commenced on the first trading day of the week. Dubai Jewellery Group data revealed that the 24K version of the precious metal started at Dh294.75 per gram, compared to Dh294.5 per gram at the weekend's market close. The other variants, 22K, 21K, and 18K, were trading at Dh272.75, Dh264.25, and Dh226.5 per gram respectively. Internationally, spot gold was trading at $2,433.58 per ounce, a 0.23% increase at 9.05am local time. The metal has recently been volatile, dipping below $2,400 per ounce last week before rebounding. Factors influencing gold prices include the US Federal Reserve's decision to lower interest rates in September, geopolitical tensions in the Middle East, and concerns about a recession in the world's largest economy.
Dubai, often referred to as the City of Gold, is a renowned global destination for purchasing precious metal jewelry. The Gold Bullion Company reports that the UAE ranks second in per capita gold demand at 5.07 grams, just behind Hong Kong's 5.12 grams. The robust demand for gold in the UAE is also fueled by the millions of tourists who visit Dubai annually. 'The UAE's high consumer demand for gold is due to its high GDP per capita, the cultural importance of gold, tax-free shopping, a strong tourism and retail sector, and gold's status as a secure investment. These factors, along with aggressive marketing and accessibility, drive significant gold consumption,' the company stated.
