Dubai: Gold prices jump, close at new record high

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Gold prices rally continued on Friday, closing at a record high in the UAE, gaining nearly Dh6 on Friday alone.

The 24K variant of the yellow jumped Dh5.75 per gram on Friday to close the week at Dh281.5 per gram, the highest ever. It gained Dh7.75 per gram in the first week of April 2024.

Among the other variants, 22K closed higher at Dh260.75, 21K at Dh252.25 and 18K at Dh216.25 – with all three of them also setting a new record.

Globally, spot gold closed higher at $2,329.93 an ounce on Friday, up 1.79 per cent.

Alex Kuptsikevich, senior market analyst at the FxPro, said gold’s prospects are becoming a little less unambiguous.

“Gold has added every trading session since March 25... The next step in this pattern is profit-taking, allowing the price to cool somewhat,” he said.

Analysts said that the precious metal market could be exposed to downside risks in the short term due to profit-taking. However, the long-term outlook remains strong and prosperous.

“Gold price could be exposed to the downside over the short term as traders could view the market as overbought,” said George Pavel, general manager at Capex.com Middle East.

“Strong price increases are often followed by corrections that could drive prices lower for a certain time before rebounding again if conditions remain favourable,” Pavel added.

Vijay Valecha, chief investment officer, Century Financial, said long-term investors may find it advantageous to purchase gold, even at its current elevated levels.