Gold prices in the UAE started the week higher due to a weakened US dollar. As per the Dubai Jewellery Group, the price of 24K gold reached Dh233.25 per gram on Monday morning, up from last week’s closing price of Dh232.5 per gram. Similarly, 22K, 21K, and 18K gold also opened higher at Dh216.0, Dh209.0, and Dh179.25 per gram, respectively.
Early trading saw spot gold rising by 0.2 percent to $1,925.78 per ounce, as investors anticipated the possibility of further interest rate hikes by the US Federal Reserve.
Zain Vawda, an analyst at dailyFX, highlighted the significant macro data expected this week, which could impact the US dollar, bond yields, and consequently gold prices. Factors such as Durable Goods Orders, consumer confidence data, and the release of the Bank Stress Test results by the Federal Reserve on Wednesday could influence market sentiments.
Rising rate hike expectations may lower gold prices, while recessionary fears could support them as investors seek safe-haven assets.
