Dubai gold climbs Dh1.50 overnight, 24K hits over one-week high
Dollar weakens, boosting appeal of bullion for non-US buyers
DUBAI: Gold prices in Dubai extended their gains on Tuesday, with 24K gold trading at Dh406.25 per gram, up from Dh404.75 on Monday.
The increase of Dh1.50 marks a continuation of the bullish trend that began over the weekend, pushing local gold prices to their highest in over a week.
Rates for other categories also edged higher: 22K gold reached Dh376.00, 21K stood at Dh360.75, and 18K climbed to Dh309.50. This follows Monday’s strong opening, which had already reversed last week’s losses.
What’s happening globally?
In international markets, spot gold held firm at $3,371.40 per ounce by 0432 GMT, maintaining the momentum from Monday’s peak – the highest since 24 July. US gold futures also remained steady at $3,425.30.
The rally follows weaker-than-expected US job data, which has boosted investor confidence in a potential Federal Reserve rate cut in September. As a result, the dollar index hovered near a one-week low, while yields on the 10-year US Treasury note fell to a one-month low – both factors that typically support gold prices.
Gold thrives in low-interest-rate environments and tends to gain in times of political or economic uncertainty. Analysts note that traders now estimate a 92% chance of a US rate cut in September, making bullion more attractive.
In geopolitical developments, former US President Donald Trump reignited trade tensions, threatening higher tariffs on Indian goods due to India’s continued Russian oil imports. India has labelled the comments as “unjustified,” raising concerns over a deeper economic rift.
Other metals
Other precious metals saw modest declines. Spot silver dipped 0.1% to $37.37 per ounce, while platinum fell 0.4% to $1,324.05, and palladium dropped 0.4% to $1,201.47 in global markets.