Gold prices in Dubai experienced a slight decrease at the opening of the markets on Monday, with 24-karat gold falling to Dh325.25 per gram. The 22-karat variant also showed a decline, dropping to Dh301.0 per gram. Additionally, 21-karat gold prices fell to Dh291.5 per gram, while 18-karat gold was priced at Dh249.75 per gram. Spot gold was trading at $2,685.18 per ounce, reflecting a decrease of 0.15 percent.

According to Khaleej Times, Chris Weston, the head of research at Pepperstone, commented on the current market trends, noting that gold prices had closed higher for four consecutive sessions. He pointed out that the price had pushed above downtrend resistance from the all-time high of $2,790. Despite this upward movement, Weston mentioned that the rise appears to be a slow-motion grind towards the $2,700 mark, indicating that buyers are currently in control of the market.

Weston highlighted the broader economic context affecting gold prices, mentioning rising long-end bond yields and concerns that some advanced economies may be moving towards a stagflation environment. He also referenced the potential for a tariff standoff, suggesting that gold serves as an effective portfolio hedge amid these uncertainties. As the U.S. debt ceiling negotiations continue, he stated that the likelihood of Congress reaching an agreement appears increasingly tenuous, underscoring gold’s role as a protective asset for investors in turbulent times.

“For market participants who want to sleep well at night amid the increasing noise, gold offers portfolio protection here, and why the risk of a push into $2,700 seems like the right play,” Weston added, emphasizing the strategic value of gold in current market conditions.