The price of gold in Dubai increased again on Monday, August 24; coinciding with the rise in global gold prices, the weakening of the US dollar, and increasing concerns about US financial policies, investors have once again turned to gold. The global price of gold has also reached its highest level in over three months.

In the Dubai market, the price of 24-carat gold per gram reached 558.25 dirhams; while the previous day it was 554.75 dirhams. Therefore, the price of this type of gold increased by 3.50 dirhams per gram in one day.

Additionally, the price of 22-carat gold per gram reached 516.75 dirhams, which shows an increase of 3 dirhams compared to the previous day's price of 513.75 dirhams.

To better understand the impact of this increase, the raw value of a 10-gram piece of 24-carat gold is now approximately 5,582.50 dirhams; however, the manufacturing cost, taxes, and other fees charged by the store have not yet been added to this amount.

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Why Has the Price of Gold Increased?

One of the main factors is the weakening of the US dollar. The decrease in the value of the dollar makes gold purchases cheaper for those trading in other currencies, resulting in increased demand.

The global cash price of gold also rose to 4,641.27 dollars per ounce; an increase of about 0.8 percent. Gold had also grown more than 5 percent last week.

At 8:59 AM, the international price of gold was reported to be about 4,638.02 dollars per ounce, which was an increase of 22.30 dollars or about 0.48 percent compared to before.

The market is now awaiting the release of the US PCE inflation index for July and the speech of the Federal Reserve Chair at the Jackson Hole meeting. The Federal Reserve's tone regarding interest rates could determine the next direction of gold prices.

Investment inflows into gold-based ETFs have also intensified, and according to Bloomberg reports, these funds attracted more than 28 tons of gold last week; the highest weekly inflow since January. Meanwhile, a renewed increase in the value of the dollar or the real yield of bonds could be factors putting pressure on gold prices.

Summary of Today's Rates in Dubai:

24-carat gold: 558.25 dirhams/gram ⬆️ 3.50 dirhams
22-carat gold: 516.75 dirhams/gram ⬆️ 3 dirhams
Global gold: approximately 4,640 dollars/ounce

Source: Gulf News