After weeks of losses, gold prices in Dubai are recovering. On Monday, interest rates bounced up slightly which offered buyers and traders some encouragement.
Based on the Dubai Jewellery Group’s update, the price of 24K gold reached Dh387.75 per gram on Sunday, compared to Dh386 the previous Friday for a gain of Dh1.75 per gram.
Other gold variants followed the recovery trend:
- The initial price for 22K Gold opened at Dh359.25.
- The price of 21K Gold climbed to Dh344.50.
- During the week, 18K Gold edged up to Dh295.25.
On the world market, spot gold grew 0.52% to hit $3,220.47 per ounce due to a weak US currency and fresh uncertainties about the economy.
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Why do the prices go up and down so often?
The price increase happens after gold was down more than 2% last week, making it their worst week since last year. What caused the sudden change in U.S. trade?
They are mainly caused by worries about trade and credit. Reports that Trump might re-introduce trade tariffs and Moody’s stripping the US of its sterling credit rating have worried investors.
Tim Waterer, Chief Market Analyst at KCM Trade, says that the fall in the US rating by Moody’s and resulting fear among the market have boosted the gold price.
Elaborating further, Scott Bessent, US Treasury Secretary, confirmed that Trump intends to set tariffs in motion, adding more turbulence to markets everywhere.
Gold as a Safe Haven—Again
In past, gold is sought by investors during uncertain or unstable economic times. Because the US dollar is weak, conflicts between countries are more frequent and most people prefer safe investments, gold is now regaining its classic allure.
Gold is valued in Dubai by residents and tourists not only because of tradition, but also for being a secure investment when there is inflation or worldwide turmoil. Many people could be drawn back to the gold souks by the recent swing in the price of gold.
What’s Next?
While the world’s economies deal with unrest and lower growth, the gold market in Dubai is expected to be active. Be diligent no matter your reason for buying, as the usual large price swings could take place soon. Gold in Dubai is showing greater promise for now and that has put smiles on the faces of local gold traders.
What You Should Know
While the market isn’t rising dramatically, the rebound may indicate an upcoming recovery. Should worldwide instability continue, gold in Dubai may rise, influencing both buyers and investors.
Right now, whether you’re buying jewellery or looking at the market, this could be the perfect time to take action since another surge could happen soon.
Bottom Line: The yellow metal i.e. gold prices are up once more, but because the market is moving fast, things could happen quickly