Dubai gold records strongest weekly rise as 24K reaches Dh503.50 per gram
Silver rallies while weaker dollar boosts precious metals
DUBAI – Dubai's gold market ended the week on a strong note as retail jewellery prices climbed above the Dh500-per-gram mark for 24K gold, reflecting renewed strength in international bullion markets.
The latest rates released by the Dubai Jewellery Group show notable gains across all major purities after a volatile trading week.
The increase comes as global investors reacted to weaker US economic data, softer interest rate expectations and a weaker dollar, helping gold head towards its first weekly gain in five weeks.
Dubai gold rates
According to the Dubai Jewellery Group's suggested retail jewellery prices for Friday, 24K gold rose to Dh503.50 per gram, while 22K increased to Dh466.25 and 18K reached Dh383.25.
The latest prices represent a sharp increase from Thursday's rates of Dh489.25 for 24K, Dh434.50 for 22K and Dh372.25 for 18K. Earlier in the week, 24K gold stood at Dh479.25 on Wednesday, Dh480.25 on Tuesday and Dh488.00 on Monday.
Compared with Monday, 24K gold has gained Dh15.50 per gram by Friday, while the jump from Thursday alone amounted to Dh14.25 per gram. The move pushes Dubai's benchmark jewellery rate back above the psychologically significant Dh500 level after trading below it for most of the week.
Global market
Internationally, spot gold climbed 1.3% to $4,177.31 per ounce during Friday's trading, while US gold futures for August delivery rose 1.6% to $4,190.70. Bullion is on course for a 2.2% weekly gain, its first positive week in five.
The rally followed weaker-than-expected US labour market data, with non-farm payrolls increasing by 57,000 jobs in June, well below economists' expectations of 110,000. The figures prompted investors to scale back expectations of further US Federal Reserve interest rate increases, with traders now assigning a 54% probability of a September rate hike, down from 66% before the employment report.
A weaker US dollar also supported gold by making the precious metal more affordable for buyers using other currencies. Meanwhile, the World Gold Council reported that central banks added a net 41 tonnes to official gold reserves during May, signalling renewed official-sector demand.
While geopolitical developments involving Iran, the Strait of Hormuz and wider Middle East tensions continue to remain on investors' radar alongside movements in oil markets, Friday's price action was driven primarily by economic data and changing expectations for US monetary policy.
Other precious metals
Other precious metals also advanced as investor sentiment improved. Spot silver jumped 2.3% to $62.41 per ounce, remaining near its highest level in more than a week and heading for a weekly gain.
Platinum gained 2.5% to $1,656.05 per ounce, while palladium added 1% to $1,281. The broad-based rise across precious metals reflected stronger demand for safe-haven assets as the dollar weakened and expectations for higher US interest rates eased.