Gold prices in Dubai continued to rise on Thursday morning, showing an increase of 17.5 dirhams over the past week. The rise was driven by the decrease in US Treasury bond yields from multi-year highs and the maintenance of the US dollar at multi-month lows.
The price of 24K gold traded at 541 dirhams per ounce, which is higher than on Wednesday's market and 15 dirhams compared to Tuesday's closing. Other varieties of yellow metal—22K, 21K, 18K, and 14K—also showed growth, reaching 501, 480.5, 411.75, and 321.25 dirhams, respectively.
On the global spot gold market, there was a growth of 0.09 percent, with the price standing at $4491.47 per ounce. Silver rose by 2.16 percent and traded at $67.14 per ounce.
Analysts note that both gold and silver are attempting to recover after a sharp sell-off that occurred on Tuesday. This process is supported by falling treasury yields and dollar weakness.
Since the UAE dirham is pegged to the US dollar, the monetary policy of the UAE directly depends on US Treasury yields. Vijay Valecha, Investment Director at Century Financial, explained that softer US economic data lowered expectations for further tightening by the Fed, and markets are now focused on the FOMC meeting protocols in July and upcoming Jackson Hole statements for additional policy signals.
He added that lower rates and a weaker dollar remain favorable factors for precious metals, although rising oil prices and fiscal issues may sustain high volatility. Valecha believes that both metals maintain a short-to-medium term bullish bias, supported by falling rates, dollar weakness, and the expectation of less restrictive Fed policy. Meanwhile, support levels of $4323 for gold and $62.65 for silver remain critical for holding.
From a technical perspective, gold remains constructive after maintaining the support level at $4323 and is now trying to regain momentum above the $4360 mark. The next significant resistance level is $4435. The analyst noted that a breakthrough above this level could strengthen the bullish structure and open the way to the $4450–$4500 zone. On the other hand, $4323 remains a key support, followed by $4227. As long as gold holds above $4323, the recent decline can be viewed as a correction within a broader uptrend.