Gold prices in the UAE saw a slight increase on the first trading day of the week, following a drop of Dh5 per gram over the weekend.
As of 9 am UAE time, the 24K gold variant was trading at Dh281.5 per gram, marking a rise of Dh0.50. Other gold variants also saw increases, with 22K trading at Dh260.75, 21K at Dh252.25, and 18K at Dh216.25 per gram.
On the global stage, gold was trading at $2,325.26 per ounce, reflecting a 0.26% increase. The recent price drop over the weekend, where gold fell from Dh286 per gram to Dh281, was attributed to a stronger dollar and higher bond yields.
Chris Weston, head of research at Pepperstone, noted that gold prices are currently in a “wait-and-see” mode, influenced by upcoming US economic trends, Federal Reserve policies, and gold purchases by central banks in emerging markets. He pointed out that the price range of $2,430 to $2,285 indicates a cautious market stance.
Weston highlighted that while the People’s Bank of China reduced its gold purchases in April and paused entirely in May, other central banks in emerging markets continue to add gold to their reserves. He speculated that the PBoC might resume buying if prices approach $2,000 per ounce.
Weston concluded that the gold market remains relatively stable within its current range and suggested that significant movements may not occur until there’s a clear reason to adjust gold allocations. “For now, we wait and trade within the $2,430 to $2,285 range,” he said.
