Dubai: Gold prices in Dubai continued to go up on Thursday, with the price of 24-karat gold going to Dh516.25 per gram, making the cost of a 10-gram purchase more than Dh5,100 before adding charges and VAT.
The latest rise is a Dh29 per gram increase since the start of August, showing a 6% increase in less than a week. The 22K rate also went up to Dh478 per gram, while 21K reached Dh458.25 and 18K went to Dh392.75.
For people who want to buy gold, the big jump means a 10-gram purchase of 24-karat gold now costs about Dh5,163, which’s about Dh290 more than it was at the start of the month.
The local market has followed the gains in gold prices, which went past $4,300 an ounce after a strong increase because of changing ideas about US interest rates and better feelings about Middle East shipping routes.
Investors are happy about progress on a plan for shipping through the Strait of Hormuz, which reduces worries about energy supply problems that had made inflation fears worse. Lower oil prices have also made people expect big increases in US interest rates, making gold more appealing.
Market experts say the increase in gold prices is getting support from economic reasons instead of just from political tensions. Weaker US jobs data, a weaker dollar and lower Treasury rates have all helped push more people to buy gold.
Even though the trend is positive, experts warn that the rapid rise could lead some people to sell for a profit during the term. After going up more than 4% in one day, gold might go down a little for a while before going up again.
Investors are now watching US economic data, such as weekly jobless claims and the latest non-farm payrolls report. If the job numbers are weak, that could help gold prices more. If the numbers are better than expected, that might bring back ideas of money rules and put pressure on gold.
For people in the UAE, gold is more expensive than it was just a few days ago, making it more important than ever.