Gold prices in Dubai have reached a new peak, nearing the historic mark of Dh450 per gram.
According to Dubai Jewellery Group, 24K gold is priced at Dh444.0 per gram, while 22K has hit a record Dh411.25 per gram. Meanwhile, 21K and 18K gold are selling at Dh394.0 and Dh338.0 per gram, respectively.
Spot gold is trading at $3,683.61 per ounce, a 0.10% increase as of 9.13am UAE time, driven by the US dollar’s decline and anticipated interest rate cuts by the Federal Reserve on Wednesday.
Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, noted that the US dollar is weakening, which is boosting gold and silver prices.
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“Regarding the Fed and rate reductions, many anticipate a total of 100 basis points over the next four meetings. Beyond the rate decision, we’ll also see an update on the dot plot, offering insights into Fed members’ expectations beyond this month. Analysts predict four 25-bp cuts in the coming months,” Ozkardeskaya added.
Chris Weston, head of research at Pepperstone, explained that gold’s surge to record highs is due to various macroeconomic concerns, with its uncorrelation to the S&P500 and US Treasuries making it an attractive portfolio hedge.
“Gold’s strength, limited pullbacks, and increased momentum have attracted systematic buyers. The Fed meeting presents a risk to gold’s positioning, but with US growth risks skewed downward, the market senses the Fed may have misjudged economic conditions and fallen behind in policy,” Weston stated.
