Dubai Gold Prices Edge Closer to Dh500 Amid Improved Sentiment

Gold prices in Dubai have been steadily climbing towards the Dh500-per-gram mark. The 24K variant reached Dh496 per gram on Wednesday's market open, up from Dh492.25 at the close of Tuesday's markets.

The other variants of gold were also trading higher: 22K at Dh459.25, 21K at Dh440.25, 18K at Dh377.50, and 14K at Dh294.25.

Analysts say that improving sentiment is behind the rise in prices, but a lack of momentum is holding back a major increase. Century Financial's Vijay Valecha notes that leading banks still predict gold will recover to $4,500-$5,000 an ounce within several quarters, but central bank purchases are currently below 2024 records.

Valecha expects the market to focus on US job openings and their impact on monetary policy. A resilient labor market could keep the Fed from easing policy, keeping the dollar strong and pressuring gold prices.