Gold prices surged at the opening of markets in Dubai on Tuesday, climbing Dh1 per gram in early trade. The 24K variant of the precious metal opened at Dh323.75 per gram, marking an increase from Dh322.75 per gram at Monday's market close. This rise follows a Dh3.75 per gram jump yesterday, driven by gold purchases by China's central bank. Over the past 24 hours, gold has gained a total of Dh4.75 per gram.
Among other variants, 22K rose to Dh299.75 per gram, 21K traded at Dh290.25, and 18K was priced at Dh248.75 per gram in early trade. Spot gold was trading at $2,670.41 per ounce, up 0.28% at 9.10 am UAE time.
Gold prices reached a two-week high on Monday after China's central bank announced the addition of 160,000 fine troy ounces for the first time in seven months, coupled with expectations of interest rate cuts by the US Federal Reserve. "The resumption of purchases indicates that the People's Bank of China remains committed to diversifying its reserves and protecting against currency depreciation, even with gold prices near record highs. Moving forward, all attention will be on the CPI data due later this week, a crucial indicator ahead of the Fed's meeting next week," said Vijay Valecha, Chief Investment Officer at Century Financial.
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