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Dubai: Gold prices hit another all-time high, heading for fourth weekly gain – News


Published: Friday April 12, 2024, 11:57

Gold prices rose to a record high on Friday as central bank buying amid geopolitical tensions sustained the yellow metal’s momentum, while strong US economic data failed to dampen the bullion’s appeal.

In Dubai, 24K was trading at Dh288.75 per gram around noon. Other variants $22,000, $21,000 and $18,000 cost Dh267.25, Dh258.75 and Dh221.75 respectively.

Spot gold rose 0.5 percent to $2,384.34 an ounce in morning trading. Bullion hit a record high of $2,395.29 earlier in the session, while U.S. gold futures gained 1.2 percent to $2,401.80.

[Editor’s Note: For real-time gold rates, click on the widget below or visit KT’s dedicated Trading News page here.]

“One thing that definitely complies with this purchase of gold by central banks is the wars that occur around the world. If we look at history, this always happened because gold is a safe haven,” said the ACY Securities analyst , Luca Santos.

Despite recent inflation data and a strong US jobs report last week that raised more questions about the viability of rate cuts this year, bullion is poised for a fourth consecutive weekly rise and has gained more than 15 percent so far this year.

“We expect gold prices to rise over the next two months. From a technical perspective, this rally is the result of gold prices breaking a record 42-month period of consolidation. It’s like a spring is being released now,” said Vincent Tie, sales manager at distributor Silver Bullion.

Higher interest rates reduce the appeal of holding non-interest-bearing gold.

Elsewhere, the European Central Bank kept interest rates at a record level but signaled it could begin cutting them in June.

Spot silver rose 1 percent to $28.75 an ounce, hitting its highest levels since February 2021.

“Like previous precious metal price rallies, silver will outperform gold once it breaks out. We are already seeing clients aware of this behavior positioning themselves into silver in recent months,” Tie said.

Platinum rose 0.7 percent to $986.65 and palladium rose 0.1 percent to $1,049.83. All three were on track to make a weekly profit.

(With contributions from Reuters)


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