Gold prices inched higher at the opening of the markets on the first trading day of the week.
The Dubai Jewellery Group data showed 24K trading at Dh262.50 per gram on Monday morning as compared to Dh262.25 per gram on Friday. Among the other variants of the yellow metal, 22K opened at Dh243.25, 21K at Dh235.25 and 18K at Dh201.75 per gram.
Globally, spot gold rose slightly to $2,172.09 per ounce on renewed bets that the US would start cutting interest rates in June.
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Wael Makarem, financial markets strategist lead at Exness, said gold retraced its steps after reaching a recent high as it faces a stronger dollar.
“While it could face some pressure over the short term, bullish factors could continue to support gold. Expectations of lower interest rates in the future could boost the asset over the longer term. In addition, central banks, which have been accumulating gold at record levels over the past two years, continue to be strong buyers,” he said.
Poland’s central bank significantly intensified its gold reserves, acquiring 130 tonnes of bullion last year. China has emerged as the primary driver of both consumer and central bank demand for gold.
“Economic challenges and instability in the Chinese real estate sector have propelled investors towards safe-haven assets like gold, bolstering individuals’ gold investments in the country,” said Makarem.