Dubai: Gold jewellery prices in Dubai hit their highest level this month as the bullion gained more strength on Tuesday amid continued tensions over another North Korean missile test.
The price of 24-karat gold went up to Dh156.50 per gram by 2.57 pm on Tuesday, the highest since October 1, when retail rates stood at Dh155. The value of 24K inched up by .50 fils from yesterday’s close and Dh1.50 from the beginning of the month.
Other jewellery pieces, such as 22K and 21K rose to Dh147 and Dh140.25, respectively, while 18K also climbed to Dh120.25.
In the global market, spot gold was up by 0.4 per cent to $1,281.40 an ounce. Other commodities, including silver, platinum and palladium have likewise moved higher, with rates posting increases of 0.84 per cent, 0.85 per cent and 0.14 per cent, respectively.
The precious metal has recently gained support from geopolitical tensions, but what is seen as a dampener for gold is the expectation that the US Federal Reserve will again adjust the interest rates.
Investors are on the lookout for the minutes of the US Federal Reserve meeting, scheduled to be out on Wednesday, that could have an impact on the precious metal. A move in favour of higher interest rates could drive investors away from the bullion and bring prices down.
“The market is also now pricing a 90 per cent chance that the US Federal Reserve will lift interest rates next year which will most likely see investors exiting gold for the US dollar on the back of higher yields,” stated the latest analysis by Financial Intermarket Brokerage Online (FIBO) Group.