Dubai: Gold prices jump to new record high

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Gold prices jumped further in the UAE at the start of the week, hitting another new high on Monday morning.

According to the Dubai Jewellery Group data, the 24K variant of the yellow metal was trading at Dh283.5 per gram at the opening of the markets on Monday, up one-and-a-half dirham from last week’s close.

Among the other variants, 22K opened at Dh262.5, 21K at Dh254.25 and 18K at Dh217.75 per gram.

The precious metal prices have jumped by Dh10 per gram in the UAE this month so far.

Globally, gold was up 1.1 per cent at $2,337.09 an ounce at 9.45am UAE time. Prices surged to over $2,350 an ounce in the Asian trade on Monday, shrugging off easing bets on the US rate cut as demand for safe haven remained strong.

Investors have become risk-averse following the tension between Israel-Iran after an attack on Iranian mission reportedly killed seven people, including a senior commander of the Islamic Revolutionary Guard.

“When geopolitical tensions rise, investors looking to become risk-averse seek the safety of gold. Geopolitical tensions can lead to economic instability and rising inflation and gold has a history of preserving wealth during times of instability. The ongoing troubles in the Middle East are forcing the price of oil ever higher, fuelling inflationary fears, and adding to gold’s allure,” said Nick Cawley, senior strategist at dailyFX.