Dubai gold prices hold above Dh522 per gram after last week's rally

Gold prices in Dubai steadied near record highs on Monday morning after a strong rally last week, with investors awaiting key US economic data that could provide fresh direction for the precious metal.

The 24K variant was trading at Dh522.75 per gram at the opening of markets on Monday, down Dh1 from Friday's close of Dh523.75 per gram, according to Dubai Jewellery Group data. Among the other variants of the yellow metal, 22K, 21K and 18K were trading higher at Dh484, Dh464.25, Dh397.75 and Dh310.25 per gram, respectively.

Spot gold was trading at $4,335.97 per ounce, down 0.13 per cent. Silver was trading at $63.8 per ounce, up 0.29 per cent.

Some analysts said rising gold prices can be attributed to the expansion of trading services, increased storage capacity, the emergence of new investment products in Asian markets.

"In my view, the rapid developments taking place across Asia’s gold market represent one of the most important structural factors investors should consider when assessing the outlook for gold prices in the years ahead," Simon-Peter Massabni, Head of Business Development at XS.com, said.

He explained that the rise in gold prices in recent years can no longer be viewed simply as a traditional reflection of inflation fears, a weaker U.S. dollar or geopolitical tensions.

"What particularly stands out to me is that this transformation does not appear to be driven solely by gold’s price appreciation over a relatively short period. Instead, it reflects the development of an increasingly sophisticated financial infrastructure around the precious metal," Massabni said.

Hind Aldah is a business reporter based in Sharjah. In her spare time, you will find her playing classical guitar, painting amateur oil paintings, or crocheting the same old scarf that leads nowhere.