Dubai: Gold Prices Rise In Early Trade, 22K Crosses Dh294 Per Gram
Date
12/26/2024 4:32:28 AM
(MENAFN- Khaleej Times)
Gold prices in Dubai jumped nearly Dh1 per gram on Thursday morning in line with the rise in global rates.
At 9am UAE time, the 24K variant opened higher at Dh318.25 per gram, up Dh1.25 per gram from last night's close.
Among the other variants, 22K rose Dh1 per gram to Dh294.5 while 21K and 18K opened higher at Dh285.25 and Dh244.5 per gram, respectively.
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Globally, spot gold was trading at $2,626.98 per ounce, up 0.4 per cent.
[Editor's Note: For real-time gold rates, click widget below or visit KT's dedicated Trading News page here .]
Rania Gule, senior market analyst at XS, added that the weakening US dollar and falling bond yields create a supportive environment for gold.
“Although the market has priced in a rate cut, the anticipated gradual pace of easing next year adds complexity to the outlook. This scenario suggests that gold's support may remain limited unless market expectations of the Federal Reserve surpass the projected level of monetary easing."
"The pressure on gold becomes apparent as it approaches the critical support level of $2,635. Breaking below this level could lead to additional downward pressure,” she added.
Gule believes that the decline in US Treasury yields offers an incentive to maintain price stability in the near term.“Investors typically turn to gold as a haven when yields drop, making this factor pivotal in sustaining positive momentum for the price,” Gule said, adding that geopolitical tensions in the Middle East add another dimension to gold's movements.
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