Gold prices continued to rise on Tuesday to the highest level in the last 12 months, as a continued risk-off mood in the financial markets boosted the metal’s safe-haven appeal.
Those who bought gold jewellery in Dubai about three months ago or last year may have reason to rejoice, with the precious metal posting a whopping AED 22 increase per gram since the beginning of the year.
Yellow gold continued its climb this week, as investors flocked to safe-haven assets amid times of uncertainty.
Price of 22-carat gold as of today (1 March 2016)
- UAE – AED 141.25
- Qatar – QAR 142.50
- Saudi Arabia – SAR 143.00
- Oman – OMR 15.30
- Bahrain – BHD 14.70
- Kuwait – KWD 11.75
Analysts have forecast that, as investors continue to seek refuge in safe-haven assets, gold will likely maintain its upward momentum over the short term.
This month, the precious metal registered its biggest jump in a year due to uncertainty in the markets.
The price rally overnight prompted the Chinese, the top consumers of gold, to sell the metal on Tuesday.
Indian jewellers on strike
India, the No.2 gold consumer, has reintroduced a local sales tax on gold jewellery after a gap of four years, on top of record import duty, in a move officials hope will dampen demand for the precious metal.
Jewellers in Mumbai began an indefinite strike Tuesday in response to the new 1% excise duty on gold, announced by the Modi government in Monday’s 2016 budget.
The strike so far only involves jewellers in Mumbai, the country’s commercial center, but it is feared the action could spread to other parts of the country following a negative response to the government plans.