Gold prices rally continued on Monday morning, jumping more than Dh3 per gram to another record high in the UAE.
The price of the 24K variant of the yellow metal jumped Dh3.25 per gram to Dh273.75 per gram on Monday morning as compared to last week’s close of Dh270.5 per gram. The other variants also made smart gains, with 22K rising to Dh253.5, 21K to Dh245.25 and 18K to Dh210.25 per gram.
Globally, spot gold was trading higher at $2,259.85 per ounce at 9.10am UAE time, rising more than one per cent in early trade.
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Gold prices in the UAE jumped eight dirhams per gram during last week and around Dh17 per gram in the month of March.
Saqib Iqbal, an analyst at Trading.biz, expects the gold price to range between $2,140 and $2,200 an ounce in April.
“I expect gold prices to remain volatile ahead of Federal Reserve’s April meeting. Until then, the price will swing between $2,140 and $2,200. A break on any side of this price range might result in an extra $50 movement in the course of the breakout,” said Iqbal.
Gold’s recent surge is attributed to US economic statistics. The market circumstances have raised gold demand while decreasing demand for other commodities.
“For example, Gold’s record price on March 22 was partly driven by the Federal Reserve’s Open Market Committee (FOMC) meeting that week, during which Federal Reserve chairman Jerome Powell reiterated the committee’s intention to cut interest rates three times in 2024,” he said.
Saqib doesn’t think gold will decline in the foreseeable future.
“It has increased significantly during the previous few months. However, this rally pushed the metal out of its three-year trading range. It might probably take a break in the short future. Yet, a fall of greater than 3 per cent to 6 per cent is unlikely. If it pulls back, it will only do so temporarily, since the US disinflation story will not enable it to pull back for an extended period,” said Iqbal.