Gold prices jumped one-and-a-half dirhams per gram in the UAE at the opening of the markets on Friday.
According to Dubai Jewellery Group data, the 24K was trading at Dh246.25 per gram on Friday morning as compared to last night’s close of Dh244.75 per gram. The other variants of the yellow metal also opened higher with 22K trading at Dh228.0 per gram, 21K at Dh220.5 and 18K at Dh189.0.
Spot gold was steady at $2,034.68 per ounce as of 11am UAE time as Chinese markets were closed for the Lunar New Year break, while a firm dollar offset safe-haven demand fuelled by Middle East concerns.
Diego Colman, contributing strategist at dailyFX, said the precious metal has been looking for direction since the start of the year, trading between $2,065 and $2,005.
“Although bullion’s prospects seemed more positive a month ago, the bullish thesis appears to be on hold for now, especially after the Federal Reserve indicated that it is in no hurry to start lowering borrowing costs,” said Colman.
Tobi Opeyemi Amure, an analyst at Trading Biz, said the gold market may not be glittering with gains lately, but brighter days could be ahead. “Gold exchange-traded funds (ETFs) have seen lacklustre interest from investors even as prices hover near $2,000 an ounce. However, some analysts see that as an opportunity in disguise… When gold eventually breaks out above $2,050, that’s when ETFs (exchange-traded funds) will start piling in en masse, catapulting prices much higher,” he said.