Following a significant decline of over one percent on Friday, influenced by a stronger dollar and rising bond yields, gold prices in the UAE experienced an uptick on the first trading day of the week, recovering from a weekend drop of Dh5 per gram.
As of 9 am UAE time, the 24K gold variant was trading at Dh281.5 per gram, an increase of Dh0.50. Other gold variants also saw similar trends, with 22K trading at Dh260.75, 21K at Dh252.25, and 18K at Dh216.25 per gram. On the global market, gold was priced at $2,325.26 per ounce, marking a 0.26 percent rise. The global dip on Friday had caused a decrease in Dubai’s gold prices, which fell from Dh286 per gram to Dh281 over the weekend.
Chris Weston, head of research at Pepperstone, commented on the overall outlook for gold, stating, “The big picture view on gold is that price is in wait-and-see mode, and assessing what comes next in US economic trends, US Federal Reserve policy and emerging markets’ central bank gold purchases.”
Weston elaborated on the trading range, saying, “The clearly defined range of $2,430 to $2,285 reflects this patient stance, although, within the $145 range, there are moves being made that traders are capitalising on. Still, I expect we’ll see these levels hold until we get a more immediate need to reweight gold allocations higher in the broad portfolio.”
Addressing the role of the People’s Bank of China, Weston noted, “The People’s Bank of China lowered purchases in April and then fully refrained from adding gold holdings to its total reserve in May. Perhaps the PBoC want to see the price closer to $2,000 before resuming buying again – however, other emerging markets’ central banks are still in the mix, and adding gold to their reserves.”
In conclusion, Weston pointed out that gold’s current state is relatively stable. “For now, gold goes quietly about its business, and for a new trend to develop may take time. So for now we wait and trade the moves within the $2,430 to $2,285 range.”