UAE gold prices continue to trade below Dh500 per gram
Gold price in UAE stays below Dh500 per gram Monday morning: Last week gold losses after global economic trends analysis with better precious metals performance.
The price of 24K gold opened at Dh488. 75 per gram, down from Dh496. 50 per gram at the close of the market on Friday.
UAE Gold Rates Today
The latest gold prices across different purities were:
24K: Dh488.75 per gram
22K: Dh452.50 per gram
21K: Dh434.00 per gram
18K: Dh372.00 per gram
Spot gold is $4,070.49 per ounce as of 9:10am UAE time, down 0.41%. Silver also fell, down 0.91% to $58.50 per ounce.
Gold Shows Resilience Despite Market Pressure
According to Ole Hansen, Head of Commodity Strategy at Saxo Bank, gold has remained surprisingly resilient despite several factors that typically weigh on prices.
These challenges include:
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Higher oil and fuel prices
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Hawkish signals from the latest US Federal Reserve meeting minutes
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Rising US bond yields
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"Considering what was thrown at bullion, gold has held up well," Hansen said, adding that the precious metal found support near the $4,050 per ounce level before rebounding as the US dollar and bond yields eased.
Market Moves From Capitulation to Consolidation
Recent price developments indicate gold has transitioned from "capitulation to consolidation" according to Hansen. It means the period of intense selling is about to get over, but the metal has not swung back to its previous uptrend yet.
Sellers are now having a hard time driving the price of gold any lower, he said. Simultaneously, the US dollar seems to be hesitating a little as well — despite geopolitical tensions and hawkish interest rate assumptions by the Federal Reserve.
Key Factors That Could Influence Gold Prices
Looking ahead, Hansen believes several economic indicators will determine gold's next direction.
Investors will closely watch:
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Inflation trends
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Global energy prices
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Strength of the US labour market
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Upcoming US economic data
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Federal Reserve interest rate expectations
Higher oil prices, keeping inflation undoubtedly high, would invite more forceful Federal Reserve plans to respond but recently weak US employment data has less than 50 index points on the probability of a forward-looking before announcing a new rate hike in source jobless claims. This leaves markets looking forward to upcoming economic releases which could sway both the US Dollar and precious metal prices.
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