Gold Prices Edge Up in UAE Markets Amidst Global Stabilization

Gold prices in the UAE began trading slightly higher on Tuesday morning, reflecting a trend of stability after recent fluctuations. 

The Dubai Jewellery Group reported slight gains in the price of 24K gold compared to the previous day’s close.

UAE Market Prices:

According to data from the Dubai Jewellery Group, 24K gold was trading at Dh261.5 per gram at the opening of the markets, a marginal increase from the previous day’s closing price of Dh261.25 per gram. Other variants of gold, including 22K, 21K, and 18K, also experienced slight price increases.

Internationally, spot gold was trading at $2,158.29 per ounce at 9:40 a.m. UAE time. Bas Kooijman, CEO and asset manager of DHF Capital, noted that gold prices had stabilized after a decline last week, responding to economic data and factors such as inflation, the strength of the US dollar, and Treasury yields.

Factors Influencing Gold Prices:

Kooijman explained that stronger-than-expected inflation data had supported the US dollar and Treasury yields, impacting expectations for Federal Reserve interest rate decisions. 

Traders awaited the Fed’s interest rate decision, with projections indicating rates would remain unchanged. A less hawkish stance from the Fed could weaken the dollar, lower yields, and potentially boost gold prices.

Chinese Demand:

Additionally, gold prices may benefit from continued Chinese demand, contributing to the metal’s rally. 

Chinese gold ETFs witnessed inflows for the third consecutive month in February, reaching a record-high total AUM. 

The People’s Bank of China also reported a gold purchase in February, extending its buying streak for 16 months and increasing total reserves.