Vijay Valecha, Special to Khaleej Times May 16, 2021
Gold prices in Dubai and worldwide continued their upward trend on Tuesday amidst the weakening of the US dollar and rising inflationary pressures.
Spot gold was up 0.1 per cent or $1.78 an ounce at $1,870.76 at 9.20am UAE time, hitting a three-and-a-half-month high.
In the UAE, 24K retail price jumped by Dh2 on Tuesday, as compared to Monday morning, and was trading at Dh226.25 per gram. The precious yellow metal has gained around Dh3 per gram since Sunday.
According to Dubai Gold and Jewellery Group’s data, 22K retail price rose by Dh1.75 per gram to Dh212.5 and 21K jumped to Dh202.75, up by Dh1.50. Meanwhile, 18K was priced at Dh173.75 per gram on Tuesday, an increase of Dh1.25 from Monday morning.
Naeem Aslam, the chief market analyst at AVATrade, said gold prices are likely to continue their run this week as traders know that economic recovery in the US is uneven.
“For instance, the US retail sales numbers released last week were underwhelming. Traders became concerned that consumers aren’t spending, and this means that economic recovery isn’t likely to tick higher. The data also adversely influenced gold prices, and this is further supporting the gold prices,” said Aslam.