Gold prices rose more than one dirham per gram on Tuesday morning to reach Dh250 per gram.
According to Dubai Jewellery Group data, the 24K variant of the precious metal was trading at Dh250 per gram at the opening of the markets on Tuesday as compared to Dh248.75 per gram the previous day. On the other hand, 22K, 21K and 18K opened at Dh231.5, Dh224.0 and Dh192.0 per gram, respectively.
Globally, spot gold was up 0.51 per cent at $2,063.65 per ounce at 9.15am UAE time as US dollar and bond yields fell on growing prospects for interest rate cuts by the Federal Reserve as early as March next year. Gold hit a more than two-week high of $2,070.39 in the previous session.
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Global markets reopened on Tuesday after an extended break due to Christmas holiday.
Analysts expect yellow metal prices to stay high 2024 due to cuts in interest rates and global geo-political issues.
Nick Cawley, senior strategist at dailyFX, said a weaker dollar and lower Treasury yields boost gold’s allure and a fresh attempt at the December 4, 2023 spike high at $2,147 an ounce is on the cards in early 2024.
Yeap Jun Rong, strategist at IG market, said the yellow metal resumed its upside into the new week, after receiving the go-ahead from softer-than-expected US personal consumption expenditure data last Friday, which validates the dovish rate expectations priced by markets.
As long as the trend in economic data remains, he said, gold prices may eye another break of the upper consolidation range at the $2,080 level ahead.