Gold Prices Soar to New Heights in Dubai

Gold Price Surge in Dubai: Precious Metal Hits New High

In the past 24 hours, those interested in gold in Dubai have witnessed a significant rise, with the price of the precious metal increasing by 5 dirhams per gram, reaching the highest level of the past month. On Tuesday morning, 24-carat gold was trading at 408.75 dirhams, compared to 403.75 dirhams the previous week. Other variants – 22K, 21K, and 18K – also strengthened, priced respectively at 378.5, 362.75, and 311 dirhams.

What is behind the rise?

The global gold market exchange rate is influenced by multiple factors that currently favor an increase. The weakening of the US dollar, as well as falling yields on US Treasury bonds, contribute to making gold more attractive from an investment perspective. The price of gold quoted in dollars becomes more favorable for investors using other currencies in such times.

Additionally, uncertainty surrounding international trade negotiations is increasing the demand for safe assets. Investors are increasingly focused on the August 1st deadline, which is tied to crucial agreements.

Technical breakout on the global gold market

On Tuesday morning, the spot gold price stood steadily at $3,388.61 per ounce, breaking out from the $3,370–$3,300 range that has been in place since early July. Gold futures prices also rose above $3,400 and maintain this level during Asian trading.

According to experts, technical analysis indicates that the majority of investors have long-term confidence in the stability of gold's value. The observed increased volume and trading activity in the markets support this.

What does this mean for buyers in Dubai?

Dubai's gold market is globally renowned for its reliability, value for money, and diverse offerings. While the rising prices pose higher costs for buyers in the short term, for investment purposes, this may signify the beginning of a new growth cycle.

Many are looking for opportunities to purchase 21K or 22K purity jewelry, which is more suited for everyday use while still holding significant value.

Outlook

In the coming days, the movement of the US dollar, international yield trends, geopolitical events, and developments in trade negotiations will remain key factors. If the current trend continues, gold could reach new heights – both in Dubai and worldwide.

(Based on a statement from Pepperstone.)