Gold prices inched higher in Dubai at the opening of the markets on the first trading day of the week.
According to Dubai Jewellery Group data, the 24K variant of the yellow metal opened at Dh294.75 per gram as compared to Dh294.5 per gram at the close of the markets on the weekend. Among the other variants, 22K, 21K and 18K were trading at Dh272.75, Dh264.25 and Dh226.5 per gram, respectively.
Globally, spot gold was trading at $2,433.58 per ounce, up 0.23 per cent at 9.05am local time.
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The precious metal has been volatile of late, falling below $2,400 per ounce earlier last week before recovering later.
The gold prices have been dictated by the US Federal Reserve’s decision to cut interest rates in September, geopolitical tension in the Middle East and recession fears in the world’s largest economy.
Popularly known as the City of Gold, Dubai is a popular destination globally for buying precious metal jewellery.
According to the Gold Bullion Company, the UAE has the second highest per capita demand for gold 5.07 per gram after Hong Kong (5.12 grams). The strong demand for gold in the UAE also comes from millions of tourists who visit Dubai every year.
“The UAE has a high consumer demand for gold due to its high GDP per capita, cultural significance of gold, tax-free shopping, strong tourism and retail sectors, and gold’s status as a secure investment. These factors, combined with aggressive marketing and accessibility, drive significant gold consumption,” it said.