Dubai gold hits Dh401.25 as global prices jump $20
Shoppers return as Dubai gold prices reflect global investor sentiment shift
DUBAI's gold prices surged on Thursday, tracking global gains as investors fled to safe-haven assets amid fiscal uncertainty in the United States.
In the local market, the price of 24-carat gold climbed by Dh3.5 to reach Dh401.25 per gram – a level not seen since early May.
Meanwhile, 22-carat gold was priced at Dh371.75, and 21-carat gained Dh3 to hit Dh356.25. The 18-carat category rose Dh2.75 to stand at Dh305.5.
Global price rally
The rise in Dubai prices follows a global jump in spot gold, which climbed 0.61% to $3,334.70 by 4:08 GMT. US gold futures mirrored the trend, up 0.65% at $3,334.89, marking the highest price since May 9. A weakening US dollar, which dipped to a two-week low, further boosted gold’s appeal among holders of other currencies.
Contributing to the rally was news from Washington, where the US House Rules Committee advanced a controversial tax and spending bill that could add $3-$5 trillion to national debt. Additionally, sluggish demand for 20-year Treasury bonds and a recent credit rating downgrade by Moody’s have heightened fears of stagflation, strengthening gold’s role as a financial refuge.
Dubai jewellery buzz
Jewellery retailers in Dubai reported increased footfall in major shopping areas like Deira Gold Souk and The Dubai Mall. Traders said the spike in 21K and 22K prices has not discouraged buyers seeking investment pieces ahead of the summer travel season. With bullion hitting record highs of $3,500.05 last month, shoppers remain alert to price dips, but the upward momentum appears to be reigniting market activity.