The price of gold in the UAE continues its upward trend, with a nearly Dh2 increase per gram at the opening of the markets. The 24K variant of gold was trading at Dh283.5 per gram, up from the previous night’s close of Dh281.75. Other variants such as 22K, 21K, and 18K also saw an increase in prices at Dh262.5, Dh254.0, and Dh217.75 per gram, respectively. Globally, gold was trading at $2,340.74 per ounce, up 0.48 per cent, reaching a one-week high as investors speculate on a potential US Federal Reserve cut.
Ole Hansen, head of commodities strategy at Saxo Bank, believes that China, a key player in the gold market, is still actively buying gold. Despite a temporary pause in buying due to record prices, the long-term outlook for gold remains bullish. Central banks, retail investors in China, and managed money traders like hedge funds have all played a role in the recent price run-up. Saxo Bank maintains a positive outlook for investment metals based on geopolitical risks, strong retail demand in China, central bank demand, and inflation concerns.
The demand for gold in China, both from central banks and retail investors, has been a major driver of the recent price surge. Even with a temporary pause in buying, the long-term outlook for gold remains positive. Managed money traders such as hedge funds have also contributed to the price increase by joining the rally early and holding their positions. Saxo Bank is optimistic about the future of investment metals, citing geopolitical risks, strong retail demand in China, central bank demand, and inflation as factors supporting their positive outlook.
Gold prices have been on the rise in the UAE, with a nearly Dh2 increase per gram at the opening of the markets. The 24K variant of gold was trading at Dh283.5 per gram, up from the previous night’s close. Other variants like 22K, 21K, and 18K also saw price increases, reflecting the positive trend in the gold market. Globally, gold prices reached a one-week high, trading at $2,340.74 per ounce, driven by investor expectations of a US Federal Reserve cut.
According to Ole Hansen of Saxo Bank, China’s continued interest in buying gold is a significant factor in the market’s bullish outlook. Despite a temporary pause in buying due to high prices, the long-term demand for gold in China remains strong. Central banks, retail investors, and managed money traders have all contributed to the recent price surge. Saxo Bank maintains a positive outlook for investment metals, citing geopolitical risks, strong demand in China, central bank interest, and inflation concerns as supporting factors.
In conclusion, the price of gold in the UAE has seen a steady increase, reflecting the positive trend in the global gold market. China’s continued interest in buying gold, along with strong demand from central banks and retail investors, has been a key driver of the recent price surge. Managed money traders like hedge funds have also played a role in the market dynamics, contributing to the overall bullish outlook for investment metals. Saxo Bank remains optimistic about the future of gold and other metals, citing various factors supporting their positive outlook, including geopolitical risks and inflation concerns.
