Gold prices in Dubai climbed higher on Monday morning, with the 24K variant continuing to trade above Dh500 per gram.
According to data by Dubai Jewellery Group, the 24K variant was trading at Dh504.25 per gram, gaining Dh2.25 after closing at Dh502 over the weekend.
The other variants, 22K, 21K, 18K, and 14K, were trading slightly higher at Dh467, Dh447.75, Dh383.75, and Dh299.25, respectively.
Globally, spot gold was trading at $4,178.4 per ounce, gaining 0.42 per cent as of 9:17am UAE time. Silver was trading at $57.63 per ounce, gaining 1.46 per cent.
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Precious metals experienced another volatile week, with gold recovering from selling pressure following the stronger-than-expected US inflation report, Ole Hansen, Head of Commodity Strategy at Saxo Bank, said.
The subsequent reversal lower in Treasury yields and the dollar provided support, leaving gold little changed on the week, he added.
“Despite the correction from last year’s record highs, underlying investment demand remains resilient. Gold is showing tentative signs of breaking its recent downtrend. In our view, a sustained recovery above $4,235 would provide further evidence that the corrective phase is ending,” the analyst explained.
“Whether this develops into a sustained bullish trend will depend partly on momentum-driven traders, including hedge funds, shifting from net sellers to net buyers,” Hansen said, explaining that renewed speculative buying alongside resilient ETF demand could provide the necessary momentum.
The precious metal has also been affected by declining yields driven by concerns about growth and equity valuations, which could provide a more supportive backdrop
“Silver’s industrial exposure leaves it vulnerable to weaker risk sentiment, but its dual role as an industrial and precious metal could become an advantage if lower yields, a softer dollar and renewed investor interest outweigh growth concerns,” Hansen said.
Source: Khaleej Times