Dubai Gold Prices Gain Momentum as 22K Reaches Dh467 per Gram
Gold prices in Dubai rose on Friday morning ahead of US payrolls data.
According to Dubai Jewellery Group data, the price of 24k gold also increased to Dh504.25 per gram, up Dh2.25 from the previous rate, while 22K gold rose by the same amount to Dh467.
Similarly, the prices of 21k, 18k and 14k gold have also increased to Dh447.5, Dh383.75 and Dh299.25 per gram respectively.
The rise in Dubai came as international gold prices remained sensitive to movements in the US dollar, Treasury yields and expectations for Federal Reserve monetary policy.
At 8:35 a.m. UAE time on Friday, spot gold was trading at around $4,188 an ounce, up 0.37%, according to the Khaleej Times report. Silver was also higher at about $61.30 an ounce.
Massabni on Gold’s Market Outlook
Head of Business Development at XS.com Simon-Peter Massabni said,gold had entered a vulnerable phase in early October, when it lost some of its momentum and came under clear pressure from a stronger US dollar and rising US Treasury yields.
He added, “Gold price movements today cannot be assessed independently of the shift in expectations for US monetary policy, particularly as higher yields increase the opportunity cost of holding a non-yielding asset.”
According to Massabni, a stronger US dollar and elevated Treasury yields are making it harder for gold prices to maintain their upward trend.
He mentioned, “The rise in the 10-year US Treasury yield to levels not seen in more than two decades makes dollar-denominated assets relatively more attractive while increasing the cost of holding gold. Therefore, I believe any short-term attempt by gold to recover is likely to remain limited unless we see a clear decline in Treasury yields or a meaningful shift in the dollar’s direction.”
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