Gold prices in Dubai rose in early trade on Thursday as yellow metal prices stayed above $2,500 per ounce.
In the UAE, the 24K variant of the precious metal was trading at Dh303.0 per gram, up Dh0.75 per gram at 9am UAE time.
Among the other variants, 22K, 21K and 18K opened higher at Dh280.5, Dh271.5 and Dh232.75 per gram, respectively.
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Globally, spot gold was trading at $2.502.13 per ounce, down 0.43 per cent at 9.05am UAE time.
Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said the dollar’s misery is making gold shine like a new penny.
“The precious metal advanced to a fresh record recently backed by the rising expectation of US Federal Reserve cuts and the lower US yields. TD Securities say that the current positioning in gold is more consistent with levels that would suggest recession. If you believe a recession isn’t imminent, gold prices may be – perhaps – inflated,” he said.
Ozkardeskaya added that the emerging markets’ central banks have indeed been buying gold to diversify against inflation and diversify away from the dollar and the uncertain geopolitical, financial landscape drives capital to the safety of the yellow metal.
“Yet, Chinese consumers are reportedly cutting back their purchases due to high prices, the dovish Fed expectations look overpriced and the RSI index suggests that gold is about to step into the overbought territory and correction could be healthy at the current levels,” he added.