UAE: Gold prices continue upward trend, jumps to new all-time high

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Gold prices continued to rise in the UAE on Tuesday, jumping by Dh4.50 per gram to hit a new all-time high.

On Tuesday afternoon, the 24K variant of the precious metal was trading at Dh286.25 per gram, up Dh4.5 from last night’s close. Other variants 22K, 21K and 18K were also trading higher at Dh265, Dh256.76, and Dh220.0 per gram, respectively.

Spot gold was trading at $2,350.75 per ounce at 5pm, UAE time, up 0.51 per cent.

The prices were driven by geopolitical tensions, monetary easing hopes, Chinese economic woes, and other global factors.

Prices also edged higher as investors were waiting for the US Federal Reserve’s policy meeting minutes and key inflation data cues on the timing and depth of the interest rate cuts.

In addition, central banks have been aggressively buying gold, pushing prices higher. China’s central bank added 160,000 troy ounces of gold in March.

“The fundamentals underpinning the current rally include growing geopolitical risk, steady central bank buying and resilient demand for jewellery and bars and coins. Together with the prospect of lower interest rates ahead, the suggestion is that ETFs have missed the rally and are now under-allocated,” said the World Gold Council.

Vijay Valecha, chief investment officer at Century Financial, said gold is nearing a critical support level at $2,260.00.