Gold prices in Dubai continued to rise on Friday morning ahead of the release of US payroll data. According to Dubai Jewellery Group, at the market opening on Friday, prices for 24-karat and 22-karat gold increased by 2.25 dirhams per gram, reaching 504.25 and 467.0 dirhams, respectively.
Similarly, prices for 21-karat, 18-karat, and 14-karat gold also rose to 447.75, 383.75, and 299.25 dirhams per gram, respectively.
The spot gold rate traded at $4188 per ounce, showing a 0.37 percent increase according to UAE time at 8:35 AM. Silver rose by 0.73 percent, reaching $61.30 (225 dirhams) per ounce.
Simon-Peter Massabni, Head of Business Development at XS.com, noted that in early October, gold entered a sensitive phase after its bullish momentum decreased and it began facing clear pressure from the strengthening US dollar and rising US Treasury yields.
He stated that today's movement in gold prices cannot be assessed independently of changes in expectations regarding US monetary policy, especially since higher yields increase the opportunity cost of holding an asset that does not generate income.
Massabni emphasized that the main obstacles currently preventing gold from returning to a broader bullish trend are the US dollar and Treasury yields.
He added that the rise in US 10-year Treasury yields to levels unseen in over two decades makes dollar-denominated assets relatively more attractive while increasing the cost of holding gold. Therefore, in his opinion, any short-term attempt by gold to recover is likely to remain limited unless there is a clear decline in bond yields or a significant change in the dollar exchange rate.