Gold prices in the UAE saw a slight increase in early trading on Monday, following a decline from the record highs observed last week. The 24K variant of the precious metal was trading at Dh331.75 per gram on Monday morning, up from last week’s closing price of Dh331.5 per gram. Among the other variants, 22K, 21K, and 18K were trading at Dh307.25, Dh297.5, and Dh255.0 per gram, respectively.
Gold reached an all-time high on Thursday, with 24K hitting Dh337.25 per gram and 22K standing at Dh312.25 per gram. Spot gold was trading at $2,741.47 per ounce, down by 0.26 percent. The price movements of the yellow metal have been largely influenced by geopolitical tensions in the Middle East, uncertainties surrounding the US election, and interest rate cuts by the US Federal Reserve.
Samer Hasn, a senior market analyst at xs.com, stated that geopolitical factors could sustain gold’s upward trend, especially with increasing reports suggesting a potential attack by Iran on Israel. “This could trigger a new series of attacks and counter-attacks that might impact economic facilities and supply chains, further intensifying global economic uncertainty,” he explained.
Hasn also noted that a weak equity market performance would likely support gold as risk appetite diminished, due to mixed quarterly results from major corporations and some pessimistic forecasts for the future. However, the substantial inflows into bond funds could hinder the gains of non-yielding gold.
“On the other hand, political uncertainty in the US as the presidential election nears is expected to enhance the appeal of the yellow metal, as the polls draw closer with no clear advantage for either candidate,” he added.
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