At the start of the markets on Monday, gold prices in the UAE fell, but they are expected to rise significantly over the next four months.
The 24K was trading at Dh236.75 per gram on Monday, down from Dh237.25 per gram at the end of the markets last week, according to statistics from Dubai Jewellery Group. At 9 am UAE time, 22K, 21K, and 18K began trading at Dh219.25, Dh212.25, and Dh181.75 per gram, respectively.
The price of precious metals is likely to conclude the month approximately 2% higher, the most since March, as the US dollar is poised for its second consecutive monthly slide and interest rates are getting close to their highest level.
Gold prices are being restrained by interest rate increases by the US Federal Reserve and the European Central Bank, according to Manish Jaradi, Strategist at daily.
“However, at the respective press conferences, Fed Chair Jerome Powell and ECB President Christine Lagarde sounded more neutral, boosting expectations that interest rates are close to peaking,” said Jaradi.
Higher interest rates make it more difficult to purchase bullion that doesn’t pay interest and is priced in dollars.