Dubai Gold Prices Bounce Back, 22K Moves Closer To Dh500 Per Gram
According to Dubai Jewellery Group data, 24K gold price rose to Dh534.75 at the market open on Tuesday, up from Dh530.75 per gram on Monday.
Recommended For YouSimilarly, 22K, 21K, 18K and 14K gold prices gained on Tuesday as well, trading at Dh495.0, Dh474.75, Dh407.0 and Dh317.5 per gram, respectively.
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Spot gold was up half a per cent on Tuesday morning, trading at $4,432 an ounce. Silver was trending upward as well, trading nearly one per cent higher at $66.93 an ounce.
Chris Weston, head of research at Pepperstone, said the precious metal remains locked in a battle between buyers and sellers, with neither party showing enough conviction to drive a sustained and persistent directional move in the gold price.
“However, several factors suggest the balance of risk remains modestly skewed to the upside, with a retest of $4,500 and last week's highs to be tested. Shanghai gold futures remain an important signal, particularly after news that the People's Bank of China (PBoC) added around 630,000 ounces of gold to its reserves in its latest reported purchase. That extends its accumulation programme to a 22nd consecutive month and represents its largest monthly purchase since 2023,” added Weston.
“As we've seen in recent months, moves in Shanghai gold futures can have a meaningful influence on CME futures and spot gold. Continued official-sector buying therefore provides another potential catalyst for upside momentum. There is also limited appetite to build long-USD positions ahead of US PPI and, importantly, Friday's US core CPI print,” he said.
Weston believes that it would likely require a meaningful inflation surprise at this stage to materially alter the thinking of individual Fed members ahead of next week's meeting.
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