Gold prices in the UAE maintained their upward trajectory, increasing by nearly Dh2 per gram as markets opened on Thursday. The 24K gold variant traded at Dh283.5 per gram, marking an increase of Dh1.75 from the previous close at Dh281.75. Other variants, including 22K, 21K, and 18K, also saw higher openings at Dh262.5, Dh254.0, and Dh217.75 per gram, respectively.
Globally, gold traded at $2,340.74 per ounce, up by 0.48%, reaching a one-week high as investors anticipated a potential cut in US Federal Reserve rates. Ole Hansen, the head of commodities strategy at Saxo Bank, noted that China, a key player in the gold market since 2022, continues to drive demand. He explained that the current pause in buying might be due to banks hesitating at record prices. Additionally, the focus on Chinese private buyers, a significant force in physical gold demand, has brought them into the spotlight. Despite this, Hansen emphasized that gold is consolidating, and the bullish long-term outlook remains unchanged.
Hansen also highlighted that the price surge in February and March was largely supported by strong demand from managed money traders, such as hedge funds, who entered the rally early and have not needed to adjust their positions due to the current price correction. Saxo Bank continues to hold a positive outlook for investment metals, driven by geopolitical risks, strong retail demand in China, continued central bank demand amid geopolitical uncertainty and de-dollarisation, and a shift in focus from lower rate cut expectations to support from a persistent inflation outlook.
