Gold prices increased by 2.5 dirhams per gram throughout Dubai, parallel to the rising exchange rates across the globe. 24k gold reached Dh330.25 per gram, an increase of Dh2.5 per gram at 9:00 am while 22K, 21K, and 18K gold reached Dh305.75, Dh296, and Dh253.75 per gram respectively. Amounting to 0.7 percent globally, gold is reported rose to $2727.56 an ounce.
Samer Hasn, a market analyst at xs.com, has stated that as of now, the yellow metal is on a safe plateau above $2,700 per ounce. Considering the bonafide yields have caused concern towards future inflation alongside interest rates, these gains are definitely a positive change.
Mr Samer has also stated that the uncertainty brought by the expectations around the change in public finances and the deficit spending objective is what helps gold retain its value as a safe haven asset.
Refraining from changing the key lending rates, the people’s bank of China is anticipating poor domestic demand, increasing the level of expectations they had from cutting the rates. The lack of having cut expectations only escalates the level of uncertainty that shrouds the economy and its ability to tackle the impacted exports that act as support to the growth targets.
