Gold prices continued their upward trend in Dubai on Friday as the precious metal was heading for the best week since January on the back of weaker oil prices.
The 24K gold price was trading at Dh5140.0 per gram on Friday morning, up from Dh510.50 per gram at the close of the markets on Thursday. Among the other variants of the precious metal, 22K, 21K and 18K were trading higher at Dh476.0, Dh456.25, Dh391.25 and Dh305.0 per gram, respectively.
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Spot gold was trading at $4,267.89 per ounce, up 0.63 per cent.
Naeem Aslam, CIO at Zaye Capital Markets, said spot gold is trading near US $4,265 per ounce, as investors assess the interaction between labour-market weakness, inflation pressure and geopolitical risk.
“The outlook for the Strait of Hormuz introduces a different influence on the gold market. US President Donald Trump said an agreement to reopen the shipping route could arrive soon, while also warning of stronger action if progress fails. A confirmed reopening could reduce oil-supply fears and remove part of gold’s immediate geopolitical premium.
“However, lower energy prices could also weaken inflation expectations, reduce Treasury yields and strengthen expectations for easier monetary policy. That combination would lower the opportunity cost of holding non-yielding bullion and could provide broader support after any initial safe-haven selling,” he added.
Source: Khaleej Times