Dubai Gold Prices Surge as Dollar Weakens

Gold prices in Dubai have rebounded as the US dollar weakens, pushing spot gold closer to $4,500. According to data from the Dubai Jewellery Group, 24K gold rose to Dh534.75 per gram at the market open on Tuesday, up from Dh530.75 per gram on Monday.

22K, 21K, 18K and 14K gold prices also increased, trading at Dh495.0, Dh474.75, Dh407.0 and Dh317.5 per gram, respectively.

Chris Weston, head of research at Pepperstone, noted that the precious metal is locked in a battle between buyers and sellers, with neither party showing enough conviction to drive a sustained directional move in the gold price.

The balance of risk remains modestly skewed to the upside, with a retest of $4,500 and last week's highs potentially on the horizon. The People's Bank of China's addition of 630,000 ounces of gold to its reserves is seen as a key signal, particularly after it extended its accumulation programme to a 22nd consecutive month.