Gold prices climbed significantly in Dubai on Tuesday morning, reflecting an upward trend in international markets. At the opening of the markets, gold saw an increase of Dh2.5 per gram, driven by strong global performance.
As of 9:00 AM UAE time, 24K gold was priced at Dh330.25 per gram, marking a Dh2.5 rise. Meanwhile, 22K, 21K, and 18K gold also recorded gains, reaching Dh305.75, Dh296.00, and Dh253.75 per gram, respectively.
Globally, gold prices rose by 0.7% to $2,727.56 per ounce. Analysts attribute the rally to ongoing market dynamics, including economic uncertainties and inflationary pressures.
Samer Hasn, a senior market analyst at xs.com, highlighted that gold continues to trade above the critical $2,700-per-ounce level. He noted that the gains are significant, especially in the face of rising Treasury yields. “Treasury yields are climbing, which typically signals concerns over inflation and interest rates. Yet, gold remains resilient, underscoring its role as a safe-haven asset,” Hasn explained.
Hasn also pointed to broader economic factors bolstering the appeal of gold. “Uncertainty around public finances and expected shifts in tax and deficit policies are providing support for gold. Investors are likely turning to the yellow metal to hedge against potential economic instability,” he added.
Developments in China’s economy have further contributed to global uncertainty. The People’s Bank of China recently announced that it would leave key borrowing rates unchanged. While this decision was widely anticipated, it has raised concerns about the country’s economic resilience.
“China is grappling with weak domestic demand, and the lack of monetary policy adjustments keeps uncertainty high,” Hasn said. He also emphasized the challenges facing China’s export-driven growth targets, which could have a ripple effect on global markets.
The rise in gold prices comes amid a backdrop of shifting economic policies and concerns about inflationary trends worldwide. Analysts suggest that the precious metal’s enduring appeal as a safe-haven asset is likely to sustain its current momentum.
In the UAE, gold remains a popular investment choice, and the latest surge is expected to encourage increased activity in the local market. With prices climbing steadily, investors and consumers alike are closely monitoring developments to gauge future trends in the gold market.
