22-05-2025
Dubai: Gold prices rise above Dh400 per gram again, hit 2-week high
Gold hit a two-week high on Thursday as the price rose above Dh400 per gram in Dubai, pushing the global rate of the precious metal above $3,340 per ounce due to US debt fears.
At the opening of the markets in Dubai on Thursday, 24 karat was trading at Dh402.5 per gram. Among the other variants, 22 karat, 21 karat and 18 karat were trading at Dh372.5, Dh357.0 and Dh306 per gram, respectively.
Spot gold was trading at $3,338.82 per ounce, up 0.74 per cent.
The US Treasury Department saw soft demand for a $16-billion sale of 20-year bonds on Wednesday, which is weighing not just the dollar but Wall Street as well, with traders already jittery after Moody's cut the US triple-A credit rating last week.
George Khoury, global head of research and education at CFI, said the reason behind sustained gold purchases is largely tied to rising global debt levels and ongoing geopolitical tensions.
'These tensions have persisted since the start of the Russia-Ukraine conflict and have extended into the broader Middle East region. These factors are currently exerting a strong influence on gold prices. Additionally, we should consider the recent weakness in the US dollar, about a month ago, which led to a rise in gold prices. This was followed by a strengthening of the dollar, which in turn contributed to a decline in gold,' he said.
He pointed out that major central banks, investment banks and hedge funds have forecasted potential gold price targets as high as $3,500, $3,750, or even $4,000. 'These projections, while optimistic, remain within the realm of possibility.'
