Gold Prices Soar in UAE
Gold prices in the UAE witnessed a significant surge on the first trading day of the week, driven by a global rebound in rates attributed to the weakening US dollar. At the start of Monday morning, the 24K gold variant was priced at Dh244.5 per gram, marking an increase from last week’s close at Dh243.75 per gram. Similarly, other karat variants followed suit, with 22K, 21K, and 18K opening at Dh226.5, Dh219.25, and Dh188.0 per gram, respectively.
Market Analysis and Outlook
Last week saw a decline in gold prices, nearing a two-month low, as market sentiment reacted to mixed statements from US Federal Reserve officials regarding January’s unexpectedly high inflation figures. This uncertainty led to a reassessment of expectations about the timing and extent of potential interest rate adjustments.
Saxo Bank holds a positive view on both gold and silver in the UAE but highlights the likelihood of a prolonged period of stability until there is more clarity on future US rate adjustments.
Expert Insights and Recommendations
Ole Hansen, Head of Commodity Strategy at Saxo Bank, stressed the importance of upcoming economic data and its impact on the dollar, bond yields, and expectations surrounding rate adjustments. Market dynamics are expected to remain volatile until the initial rate cut is implemented, with gold and silver prices susceptible to fluctuations driven by evolving economic indicators and sentiment shifts.
Investors are advised to stay cautious and monitor economic data and policy announcements to shape their trading strategies and investment decisions in the precious metals market.
