24K gold climbs Dh3.50 on Monday after rising nearly Dh44 since the start of August.
Dubai: Gold prices in Dubai moved closer to their August peak on Monday, with jewellery buyers facing rates that have climbed by nearly Dh44 per gram since the start of the month.
The price of 24K gold stood at Dh531 per gram at 8:34am on Monday, up from Dh527.50 on Sunday. Meanwhile, 22K gold rose to Dh491.75 per gram, compared with Dh488.50 the previous day.
Monday’s rate puts 24K gold just Dh2.25 below its August peak of Dh533.25, recorded on August 12, keeping prices near the top of this month’s trading range.
Buyers tracking gold prices since the start of August have seen a significant increase in just over two weeks. The 24K gold rate stood at Dh487.25 per gram on August 1, meaning it had risen by Dh43.75 per gram, or nearly 9%, by Monday morning.
The rise has been similar for 22K gold, which increased from Dh451.25 per gram on August 1 to Dh491.75, representing a gain of Dh40.50 per gram.
Prices moved quickly this month
Gold started August below Dh500 per gram for 24K, falling to Dh485.50 on August 3 before recovering to Dh492.25 the following day.
Prices then accelerated during the first week, with 24K gold reaching Dh510.50 on August 6 and Dh523.75 on August 7. The rate climbed further to Dh533.25 on August 12, before easing to Dh523.50 a day later.
Monday’s rise to Dh531 puts 24K gold within just Dh2.25 of its August peak.
Global gold holds near $4,400
International gold prices extended their two-week advance on Monday, trading near $4,400 an ounce after gaining almost 1% over the previous week.
Weaker US retail sales data and declining consumer sentiment put pressure on the dollar and reduced expectations of an imminent US interest rate increase. Higher interest rates can weigh on gold because the precious metal does not generate interest.
The US dollar index fell 0.2% on Monday, making dollar-priced gold more affordable for buyers using other currencies. Meanwhile, the US Treasury yield curve continued to steepen.
Gold’s recovery above $4,000 an ounce has also been supported by renewed investor demand and increased central bank purchases, including buying from China.
Energy risks remain in focus
Uncertainty over global energy supplies remains elevated after several more ships came under attack in the Strait of Hormuz late last week. Meanwhile, the US said it was preparing additional measures targeting Iran’s economy.
Some vessels have continued to pass through the strait with their satellite transponders switched off, helping limit upward pressure on energy prices. At the same time, Iran and Oman appear to be moving closer to an agreement on the management of the waterway, although the US is not participating in the talks.
Gold moved above its 100-day moving average last week for the first time since April and has continued to trade near that level. Dubai retail prices are also hovering close to their highest levels of August.
