Precious Metal Surge: Dubai Gold Rally Escalates as 22K Nears AED 500 Per Gram Milestone
Tensions around the Strait of Hormuz have returned to focus for the precious metal market, while there is still limited visibility around a clear path towards resolving the wider US-Iran situation
Gold price rally continued in Dubai and globally on Tuesday as 22K inches toward Dh500 per gram again.
The Dubai Jewellery Group data showed 24K gold price trading at Dh531.25 per gram at the market open on Tuesday, up from Dh528.25 per gram at the close of the markets on Monday, rising Dh3 per gram. It has gained nearly Dh35 per gram in the past one month.
The 22K gold price was trading higher at Dh492.0 per gram on Tuesday, up from Dh489 on Monday.
Similarly, 21K, 18K and 14K were trading higher at Dh471.75, Dh404.25, and Dh315.25 per gram, respectively.
Spot gold was trading at $4,401 per ounce, up nearly one per cent on Tuesday morning.
Waleed Said, technical analyst at GivTrade, said the Strait of Hormuz standoff is still writing gold’s script.
“Last week’s fireworks – Iran and Oman circling a shipping deal, tanker attacks, and Tehran refusing direct US talks – pushed gold to a two-month high near $4,350, while a shock US jobs miss dragged yields lower and gave bullion a second tailwind alongside the safe-haven bid. This week, all eyes stay on Hormuz: any real progress toward reopening the strait could extend this pullback toward $4,300 support, but another flare-up sends gold straight back toward record territory,” he said.
Ahmad Assiri, research strategist at Pepperstone, said gold prices moved higher in early session trading beyond $4,400 an ounce range, with the latest move appearing to be driven primarily by renewed flows into the metal and a notable shift in the metal market sentiment.
“What stands out in the recent price action is the strength of these flows after a period of relatively tight ranges and investors appear to be rebuilding exposure to gold, allowing prices to regain ground relatively quickly. This change in positioning and sentiment looks to be the main force behind the latest move towards $4,400 despite geopolitical developments remain part of the broader backdrop,” he added.
Assiri noted that tensions around the Strait of Hormuz have returned to focus, while there is still limited visibility around a clear path towards resolving the wider US-Iran situation.
“However, the magnitude of the latest gold move suggests that flows are currently having the greater influence on prices. If this change in sentiment continues to attract further flows, it could remain an important factor in determining whether gold can consolidate around $4,400 and potentially extend the recovery towards higher levels,” he concluded.
Source: Khaleejtimes
