Gold prices dipped on Wednesday after hitting a record high on Tuesday in Dubai, offering some relief to jewellery shoppers in urgent need of making purchases.
According to the Dubai Jewellery Group, 24K gold opened at Dh454.25 per gram on Wednesday, down from Tuesday’s record of Dh456.0 per gram.
Similarly, 22K gold fell from its all-time high of Dh422.0 per gram on Tuesday to Dh420.5 per gram by Wednesday morning, with 21K and 18K trading at Dh403.25 and Dh345.75 per gram, respectively.
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With the UAE and Indian Subcontinent wedding season approaching, even a small drop in gold prices can significantly affect overall expenses. Upcoming festive celebrations in October make this decline in gold prices a timely relief for those buying precious metal jewellery as gifts.
Globally, spot gold was trading at $3,771.5 per ounce, up 0.83%.
Analysts predict gold may ease in the coming months due to profit-taking after a strong rally, with a potential recovery next year that could see prices reach $4,000 per ounce by 2026.
Vijay Valecha, chief investment officer at Century Financial, noted that the gold rally is supported by rising expectations of further interest rate cuts from the Federal Reserve, following its recent reduction.
“Markets are now anticipating nearly two more 25-basis-point cuts this year. The weakening labour market and dovish signals from the Fed have boosted bullish sentiment in precious metals.
