Gold prices in Dubai continued to climb on Tuesday, February 7, as the bullion strengthened further on huge safe-haven demand largely triggered by a series of political events in the United States.
As of 12 noon, 24-karat gold was retailing at Dh149.25 per gram, the highest so far this year, up nearly Dh10 per gram from January 1 and Dh1.05 from Monday’s early trade.
In Asian trade, the metal climbed to its highest level since more than two months ago amid the political tension in the United States.
Spot gold was trading at $1,226.45 an ounce by 1244 GMT, having earlier reached $1,227.13 – the same level recorded on November 17, according to Reuters.
Retail prices in Dubai have been gaining some ground since the beginning of the year, jumping by 6.9 per cent. Gold’s steady rise has been aided by a small US dollar correction and US President Donald Trump’s actions.
“Gold is on a positive trajectory since the beginning of this year. With the US dollar weakening, it has asserted its safe haven status. Gold price will continue to increase if the
US dollar remains weak and US Fed Reserve decides not to change interest rates,” Karim Merchant, group CEO and managing director of Pure Gold Jewellers, told Gulf News.
Analysts predicted that the price rise will continue over the next few weeks, with gold expected to hit $1,250 an ounce.
