Dubai: Gold prices rise above Dh400, shoppers shift to cheaper variants
The Dubai Jewellery Group data showed 24K trading at Dh400.25 per gram while 22K, 21K and 18K were trading at Dh370.75, Dh355.5 and Dh304.75 per gram, respectively.
According to gold jewellers in Dubai, the volatility in precious metal prices influences the purchasing decisions of UAE residents, as higher prices constrain their budgets, forcing them to shift to smaller variants of 18K due to affordability concerns.
This becomes even more important when many residents travel to their homes and spend a handsome amount on buying jewellery for gifts and weddings.
Spot gold was trading at $3,329.84 per ounce, up 0.99 per cent in early trade. It was trading below $3,300 in the previous day's session.
US President Donald Trump on Monday expressed frustration with US-Japan trade negotiations as US Treasury Secretary Scott Bessent warned that countries could be notified of sharply higher tariffs.
'Weaker dollar and concerns about the impact if Trump's tariff deadline is not extended are supporting gold at the moment," said Nicholas Frappell, global head of institutional markets at ABC Refinery.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
UAE Moments
24 minutes ago
- UAE Moments
UAE Honors Sheikh Zayed and Sheikh Nahyan with New Coins
UAE's Central Bank has issued commemorative gold and silver coins, honoring the late Sheikh Zayed bin Sultan Al Nahyan and Sheikh Rashid bin Saeed. The late Sheikh Zayed was the founding father of the UAE and the first president of the Emirates. The late Sheikh Rashid also significant to the formation of the country, becoming the first vice president. The gold commemorative coin weighs 40 grams and measures 40mm in diameter. One side features the two leaders, while the other side features the national emblem under which is written Central Bank of the United Arab Emirates in English and Arabic. The silver coin weighs 50 grams and measures 50mm in diameter; it has the same features as the golden coin. The gold coin can only be purchased at the Central Bank's headquarters in Abu Dhabi, while the silver coin can be bought on the bank's official website. This issuance follows the launch of the new AED100 banknote, featuring the Umm Al Quwain National Fort on one side and the Etihad Rail alongside the Port of Fujairah on the other side.
Khaleej Times
an hour ago
- Khaleej Times
HSBC raises average gold price forecasts for 2025 and 2026
HSBC raised its 2025 average gold price forecast to $3,215 an ounce from $3,015 and its 2026 forecast to $3,125 from $2,915, citing elevated risks and government debt. Gold tends to perform well during periods of economic uncertainty and geopolitical tension, which lifted spot gold to a record high of $3,500.05 an ounce in late April. Spot gold was trading at $3,348.50/oz at 1146 GMT on Tuesday. "We anticipate a wide and volatile trading range of $3,600-3,100/oz for the rest of the year and year-end prices of $3,175/oz for 2025 and $3,025/oz for 2026," the bank said in a note on Tuesday. U.S. Senate Republicans on Monday evening were still trying to pass President Donald Trump's sweeping tax cut and spending bill despite divisions within the party about its expected $3.3 trillion hit to the nation's debt pile. Meanwhile, Treasury Secretary Scott Bessent warned that countries could be notified of sharply higher tariffs as a July 9 deadline approaches. HSBC said that even if gold prices ease, levels above $3,000 an ounce have reinforced gold's role as a safe haven and effective portfolio diversifier. It noted that central bank gold purchases will moderate on further rallies above $3,300 and could increase should gold correct nearer to $3,000. On the physical front, the bank said further gold price gains above $3,500 could lead to reduced demand in the jewellery, coin and small bar markets, particularly in economies such as India and China.
Khaleej Times
an hour ago
- Khaleej Times
Gold soars on safe-haven demand amid trade uncertainty, weak dollar
Gold prices surged this week as heightened investor anxiety over stalled US trade negotiations, a weakening dollar, and expectations of lower interest rates drove strong safe-haven demand. Spot gold rose by 0.8 per cent to $3,328.71 an ounce on Tuesday, while gold futures for August delivery climbed 1 per cent to $3,339.70. This follows a 1.5 per cent gain on Monday, nearly offsetting losses from the previous week, which had been triggered by a short-lived ceasefire between Israel and Iran. The rally in gold prices is being driven by several macroeconomic factors, most notably concerns over the upcoming July 9 deadline set by President Donald Trump for concluding trade deals with several key nations. Investors are bracing for the possibility of steep reciprocal tariffs — up to 50 per cent — if agreements are not secured with countries including Japan. In the UAE, rising global prices are already being reflected in local bullion rates. As of Tuesday, 24-carat gold was priced at Dh400.25 per gram, while 22-carat stood at Dh370.75, 21-carat at Dh355.50, and 18-carat at Dh304.75. The increase has arrived at a time when footfall at Dubai's Gold Souk and other jewellery outlets had just begun recovering, aided by the Summer Surprises 2025 shopping festival. However, jewellers warn that consumer enthusiasm may taper off if prices continue to hold above Dh370 per gram — a level historically associated with reduced demand among price-sensitive shoppers. 'Many customers had locked in prices around Dh365.75, and their strategy seems to be paying off,' said a leading Dubai-based retailer. 'We're seeing an uptick in forward bookings, but if prices remain elevated, retail volumes may cool.' To stimulate buying, retailers are leaning on promotional campaigns. The Dubai Summer Surprises raffle has revised its threshold down to Dh1,000 from Dh1,500 for eligibility, in a bid to cushion the impact of rising prices. Bullion market experts said with the global macroeconomic environment in flux, gold is once again positioning itself as a safe-haven refuge — a role it has played for centuries — particularly as inflation fears, trade turbulence, and fiscal uncertainty keep investors on edge. Vijay Valecha, chief investment officer at Century Financial, said the rebound reflects investors' flight to safety amid rising macroeconomic uncertainty. 'Despite recent profit-taking, gold has rebounded strongly after bouncing off a key long-term bullish trendline,' he said. 'The weakening US dollar, coupled with renewed fears about the government's fiscal deficit and legislative wrangling over a massive tax and spending bill, has only added to gold's appeal.' Valecha added that further support could come from anticipated interest rate cuts by the Federal Reserve. 'If the Fed signals dovishness in upcoming meetings, gold is likely to attract even more investor attention,' he said. Market focus now turns to key economic indicators this week, including Thursday's US non-farm payrolls report and purchasing managers' index (PMI) data from S&P Global and the Institute for Supply Management. These releases could offer clearer direction on the Fed's policy stance, influencing both Treasury yields and gold's trajectory. From a technical standpoint, analysts say gold has breached a descending channel resistance on the 4-hour chart, with upward momentum possibly pushing prices toward $3,350 — the upper boundary of the Bollinger Band and the 100-day simple moving average. A breakout beyond this level could set the stage for a test of the $3,377 mark, a previous support level from mid-May. On the downside, $3,300 and $3,275 remain key support levels. Globally, gold's appeal is further underpinned by investor expectations of continued dollar weakness. The US Dollar Index remained near three-year lows during Asian trading hours, making dollar-denominated gold more attractive to holders of other currencies. Lower US Treasury yields are also playing a role, reducing the opportunity cost of holding non-yielding bullion. Despite the absence of new geopolitical flare-ups, gold's upward momentum has been steady, supported by broader concerns over global fiscal health and trade volatility. Analysts at Commerzbank and HSBC believe gold will remain within a range of $3,100 to $3,500 through the third quarter, with fiscal policies, currency movements, and global growth indicators determining its next move. In parallel, silver futures rose 0.4 per cent to $36.00 an ounce, while platinum futures slipped 0.4 per cent to $1,360.45. Industrial metals also saw mixed movement — copper futures on the London Metal Exchange rose 0.2 per cent to $9,839.95 a ton, and US copper futures jumped 1.2 per cent to $5.1145 a pound, buoyed by stronger-than-expected growth in China's Caixin manufacturing PMI for June. Precious metals analysts at Metals Focus note that strong central bank buying and persistent inflation concerns could also lend longer-term support to gold. 'Central banks are not only diversifying away from the US dollar but also hedging against systemic risks. This sustained demand creates a floor for prices even in times of calm,' a recent report from the consultancy noted.
