The upcoming festival of Eid Al Fitr pushed up the prices of gold in the UAE buoyed by local consumers looking to buy new jewellery and investors seeking safe haven amid US China trade war. Spot gold increased by 0.2 per cent to $1,286.89 an ounce on Monday, while rates at the souks and other retail outlets increased by more than Dh1.
As of 9am, the price of 24-karat gold was retailing at Dh155.75 per gram, up from Dh154.50 a week ago. The precious metal later edged higher to Dh156 per gram, registering a Dh1.50 increase in one week. The retail rate for 22-karat gold also rose to Dh146.50, while 21K and 18K went up to Dh139.75 and Dh119.75 per gram, respectively.
Analysts and experts expect prices to even further as Eid approaches. 22k rates are expected to rise to Dh 148.45 per gram. This reverse in gold prices can be attributed to the shaky risk appetite in the market and escalating US-Sino trade tensions.