Gold prices have climbed Dh29 in six days, pushing the cost of a 10g purchase to about Dh5,163.
Dubai gold prices continued their sharp upward climb on Thursday, with 24-karat gold rising to Dh516.25 per gram, extending a six-day rally that has added Dh29 per gram since the beginning of August.
At the latest rates, buying 10 grams of 24K gold now costs about Dh5,163, excluding making charges and VAT, making it Dh290 more expensive than it was at the start of the month.
Gold Prices Continue Strong Rally
The latest Dubai gold rates stood at:
- 24K: Dh516.25 per gram, up from Dh514.
- 22K: Dh478 per gram, up from Dh476.
- 21K: Dh458.25 per gram, up from Dh456.25.
- 18K: Dh392.75 per gram, up from Dh391.25.
The 24K price began August at Dh487.25 per gram before briefly easing to Dh485.50 on August 3. Prices then climbed steadily to Dh492.25 on August 4, surged to Dh514 on August 5, and reached Dh516.25 on Thursday.
The 22K rate also increased sharply, rising from Dh451.25 at the start of the month to Dh478, a gain of Dh26.75 per gram.
Global Gold Climbs Above $4,300
International gold prices also moved higher, briefly trading above $4,300 an ounce after gaining as much as 1.4% during Thursday’s session.
The rally followed a 4.1% jump in the previous session, marking gold’s biggest single-day gain since February.
Analysts said the move has increasingly been driven by economic expectations rather than geopolitical uncertainty alone.
“The fact that gold is showing strength despite improving geopolitical expectations tells me that the primary driver of the current move has become increasingly economic and monetary rather than simply defensive demand caused by political risks,” said Rania Gule, Senior Market Analyst at XS.com.
Interest Rate Expectations Support Bullion
Gold also found support as investors reduced expectations for further US interest rate increases.
Markets are now pricing in one Federal Reserve rate hike by the end of the year, compared with expectations for two hikes just a week ago. Lower interest-rate expectations generally benefit gold because the precious metal does not generate interest income.
Weaker-than-expected US employment data, a softer US dollar, and lower Treasury yields have also helped strengthen bullion prices.
Meanwhile, signs of progress toward restoring shipping through the Strait of Hormuz eased some concerns over energy supply disruptions, keeping oil prices relatively lower and reducing inflation fears. Despite improving geopolitical conditions, gold continued to attract investors seeking stability amid growing uncertainty over the global economic outlook.
Source: Gulf News
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