Dubai: Gold prices continue to rise, Dh1.75 higher in early trade
Gold prices in Dubai rose further at the opening of the markets on Tuesday as the US bank raised its gold price forecast.
The Dubai Jewellery Group data showed 24K trading Dh1.75 per gram higher at Dh350.75 on Tuesday morning, up from Dh349.0 per gram at the close of the markets on Monday. Among the other precious metal variants, 22K rose to Dh326.5, 21K to Dh313, with 18K rising to Dh268.25 per gram.
Globally, spot gold was trading at $2,912.82 per ounce, up 0.5 per cent.
The US bank Goldman Sachs has raised its 2025 gold forecast to $3,100 per ounce, up from $2,890, due to good demand from central banks.
The bank estimates that structurally higher central bank demand will add 9 per cent to the gold price by year-end.
Last week, gold prices reached a new all-time high, surpassing $2,940 per ounce on February 10. This surge was primarily driven by rising trade tensions following the possible imposition of tariffs by the US However, analysts warn that this rally may not be sustainable in the long term.
'Unlike previous cycles, gold has demonstrated strength even without the traditional support of a weak dollar and declining US Treasury yields. Economic uncertainty has been the main driver of its price increase this time. Growing concerns over a potential trade war have led investors to seek refuge in this precious metal, considered a safe-haven asset during economic and geopolitical crises," said Antonio Di Giacomo, senior market analyst at XS.com said
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