The Dubai gold market showed another milestone on Tuesday as Dubai gold prices increased to unprecedented levels. So, it is empowering the reputation of the emirate as a global hub for gold trade.
According to the Dubai Jewellery Group, the 22K gold variant rose Dh2.75 per gram to Dh408. However, the price of 24K gold increased by Dh3 per gram, reaching Dh440.5. Similarly, the price for the 21K variant is also closer to Dh400 because it opened at Dh391. However, 18K gold stood at Dh335.
This consistent growth trend comes as global factors continue to push the precious metal higher. Thus, spot gold price crossed the $3650 mark and traded at $3,655.32 per ounce at 9:30 AM UAE time. However, analysts eyes on the next milestone of $3,700.
Why Are Dubai Gold Prices Rising?
The following are the potential reasons for the increase in the gold price in Dubai:
- Easing US monetary policy and expectations of interest rate cuts.
- A weaker US dollar makes gold more attractive.
- Central bank buying and increased demand.
- Global geopolitical risks and economic uncertainty.
The research strategist at Pepperstone, Dilin Wu, noted that the weak US nonfarm payrolls, political turbulence in Japan, and central bank gold purchases are fueling the rally. Moreover, Wu said, “Gold bulls have been unstoppable, with prices breaking through the $3600 level.”
Market analyst at XS.Com, Linh Tran, also said that gold is in a powerful uptrend and could strengthen further if a genuine monetary-easing cycle develops.
Should UAE Residents Buy, Sell, or Hold?
As the gold price is increasing, many residents in the UAE are continuously asking whether it is the right time to sell gold. However, experts suggest that it would be great to hold for now, as further growth is possible in the medium term. However, they also warn investors to stay vigilant against profit-taking after months of strong rallies.
Looking Ahead
The trajectory of the gold is going to be heavily dependent on upcoming economic indicators because the global market is still waiting for the US inflation data (CPI and PPI) this week. As of now, Dubai is becoming the heart of this global gold rush because the gold price in the emirate is continuously growing. Still, you need to wait to sell your valuable asset as experts predict more growth.
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[…] Dubai Gold Prices Hit Record Highs as 22K Surges to Dh408 per Gram […]