Gold prices in Dubai continued their upward movement on Thursday, with 24K gold reaching Dh541 per gram as global precious metals attempted to recover from a recent sell-off.
The latest move comes as US Treasury yields eased from multi-year highs while the US dollar remained near multi-month lows, creating a more supportive environment for gold.
Dubai gold prices rise across major categories
The 24K gold rate stood at Dh541, gaining Dh1 from Wednesday’s close and Dh15 from Tuesday’s closing level.
Other gold categories also recorded gains:
- 24K: Dh541 per gram
- 22K: Dh501 per gram
- 21K: Dh480.50 per gram
- 18K: Dh411.75 per gram
- 14K: Dh321.25 per gram
Over the past week, Dubai’s gold price has increased by Dh17.50 per gram, highlighting the continued strength of the precious metal in the local market.
Global gold and silver prices recover
International markets also showed signs of recovery.
Spot gold was trading at around $4,491.47 per ounce, up 0.09 per cent, while silver gained 2.16 per cent to reach approximately $67.14 per ounce.
Market analysts said both precious metals are attempting to regain momentum following Tuesday’s sharp decline.
Why US interest rates matter for UAE gold prices
Changes in US monetary policy can have a direct impact on gold prices in the UAE because the dirham is pegged to the US dollar.
Lower US Treasury yields generally make non-interest-bearing assets such as gold more attractive to investors. A weaker dollar can also provide additional support for precious metals.
Analysts are closely watching upcoming US economic data, Federal Reserve signals and comments surrounding the Jackson Hole economic policy gathering for clues about the direction of interest rates.
Gold maintains a bullish outlook
Market analysts continue to see a broadly positive medium-term outlook for gold, although volatility remains possible.
Gold recently held an important support level around $4,323 per ounce and is now attempting to regain momentum above $4,360.
The next significant resistance level is around $4,435. A sustained move above that point could potentially open the way towards the $4,450-$4,500 range.
On the downside, $4,323 remains an important support level, followed by $4,227.
As long as gold remains above the $4,323 level, analysts say the recent decline could be viewed as a correction within a broader upward trend.
What Dubai investors should watch
For UAE investors and gold buyers, movements in global interest rates, the US dollar and geopolitical and economic developments remain key factors to monitor.
Gold’s recent gains also come as investors continue to assess the outlook for monetary policy and inflation.
While short-term price swings can remain significant, the combination of softer yields and expectations of less restrictive US monetary policy could continue to support precious metals.
Dubai Herald will continue to track Dubai gold prices, UAE markets and major developments influencing precious metals and the wider economy.
