Dubai Gold Price Remains Steady Amid Oil Price Fluctuations

The price of gold in Dubai has seen a relatively steady week, with a loss of Dh9.25 per gram for 24K gold. The precious metal was trading at Dh517 per gram on Thursday morning, up from Dh516.25 the previous Tuesday. Globally, spot gold is trading at $4,291.3 per ounce, up 0.2 percent as of 9:00am UAE time.

Financial analyst Vijay Valecha notes that gold has been sensitive to fluctuations in oil prices and potential increases in Federal interest rates. He explains that investors are weighing the impact of high energy costs on inflationary pressures, which could lead to further rate hikes. Higher borrowing costs typically weaken the case for holding gold as it does not pay interest.

However, Valecha points out that gold's attractiveness as a hedge within a portfolio is standing firm due to strong inflows into gold ETFs and demand from central banks. Despite rising US real yields and a strengthening dollar limiting immediate gains, gold has rebounded with support from the 200-day Exponential Moving Average around the $4320 level.