Dubai Gold Prices Surge Ahead of US Payroll Data
Gold prices in Dubai have risen further ahead of US payroll data on Friday morning. According to the Dubai Jewellery Group, 24K and 22K gold prices increased by Dh2.25 per gram to Dh504.25 and Dh467.0 per gram respectively at market open.
Spot gold was trading at $4,188 an ounce, up 0.37 per cent, while silver rose 0.73 per cent to $61.30 (Dh225) an ounce. Simon-Peter Massabni, head of business development at XS.com, attributed the gold price movements to a shift in expectations for US monetary policy and rising US Treasury yields.
Massabni noted that the current market conditions make dollar-denominated assets relatively more attractive, increasing the opportunity cost of holding gold. He believes any short-term attempt by gold to recover will remain limited unless there's a clear decline in Treasury yields or a shift in the dollar's direction.