Gold prices in the UAE soared on Tuesday, with the precious metal reaching an all-time high, surging by Dh4.50 per gram. At 24K purity, gold was trading at Dh286.25 per gram in the afternoon, marking a significant increase from the previous day’s close. Other variants including 22K, 21K, and 18K also experienced notable gains, trading at Dh265, Dh256.76, and Dh220.0 per gram, respectively.
The spike in gold prices was attributed to various global factors including geopolitical tensions, hopes for monetary easing, and concerns surrounding the Chinese economy. Additionally, investors awaited cues from the US Federal Reserve’s policy meeting minutes and key inflation data, which could influence the timing and extent of interest rate cuts.
Central bank activity also contributed to the surge, with aggressive gold purchases reported, particularly by China’s central bank which added 160,000 troy ounces of gold in March alone.
Commenting on the rally, the World Gold Council highlighted growing geopolitical risks, steady central bank buying, and robust demand for gold jewellery, bars, and coins. There is also speculation that exchange-traded funds (ETFs) may have missed out on the rally and are now under-allocated.
Vijay Valecha, chief investment officer at Century Financial, emphasized that gold is approaching a critical support level at $2,260.00, indicating ongoing volatility in the market.
