Gold prices set for best monthly gain in 50 years after hitting record high
In Dubai, 24K gold price was selling at Dh664.5 per gram on Thursday evening, slightly down from the all-time high of Dh666 hit earlier in the day
Gold prices rally continued on Thursday as well, skyrocketing to a new record high in Dubai and worldwide, driven by global geopolitical uncertainty and rising tension between Iran and the US.
The precious metal surpassed $5,500 for the first time on Thursday and is set for the best monthly gain in 50 years in January.
On Thursday evening, spot gold was trading at $5,504.24 per ounce, up 3.7 per cent.
In Dubai, 24K gold price was selling at Dh664.5 per gram on Thursday evening, slightly down from the all-time high of Dh666 hit earlier in the day.
The gold prices in Dubai have gained Dh144.5 per gram year-to-date.
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Similarly, the other precious metal variants hit an all-time high on Thursday with 22K crossing Dh600 per gram for the first time ever. After hitting an unprecedented high of Dh616.75 on Thursday morning, 22K eased to Dh615.25 per gram in the evening.
Vijay Valecha, chief investment officer, Century Financial, attributed the massive gains in precious metal prices to rising global uncertainty.
“On a fundamental level, gold is rising due to growing geopolitical risks. Talks between the US and Iran failed to make progress on Iran's nuclear programme, and US President Donald Trump has hinted at a possible intervention in the Middle East, which has increased uncertainty,” said Valecha.
Recently, a US aircraft carrier strike group arrived in the Middle East, bringing the number of US warships in the region to 10. These warships give a significant firepower at President Donald Trump's disposal if he decides to strike Iran.
In addition, the drop in the dollar index is driving investors towards safe-haven assets like gold.
Technically, Valecha added, gold pushed toward $5,604 in early trading but has since pulled back to $5,549. On the upside, he sses $5,604 acts as key resistance, and a break above this level could open the way toward $5,700.
On the downside, support for the yellow metal is seen at $5,438 on the hourly chart. A break below this level may push gold toward the next support at $5,317.
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