Gold prices in Dubai fell on Wednesday morning after hitting a record high the previous day.
According to the Dubai Jewellery Group, 24K gold opened at Dh443.75 per gram on Wednesday, slightly down from Tuesday’s record of Dh445.25. Similarly, 22K, 21K, and 18K gold began at Dh410.75, Dh393.75, and Dh337.75 per gram, respectively.
Spot gold surpassed $3,700 per ounce for the first time on Tuesday, driven by increased safe-haven demand, a weaker dollar, and central bank purchases. Analysts predict a healthy correction in gold prices before they climb to $4,000 per ounce by 2026.
On Wednesday morning, spot gold traded at $3,680.57 per ounce, a decrease of 0.22%.
Stay updated with the latest news. Follow KT on WhatsApp Channels.
Linh Tran, a market analyst at xs.com, noted that gold has reached a new high of around $3,703 per ounce, underscoring the impact of anticipated monetary easing and rising safe-haven flows. This trend indicates that investors are boosting their gold positions in anticipation of the US Federal Reserve meeting on September 18, amid ongoing economic and geopolitical uncertainties.
“Currently, market attention is on whether the Fed will cut interest rates and the accompanying message. A dovish stance from the Fed could lead to lower real yields, a weaker dollar, and continued support for gold. Conversely, a cautious or hawkish approach might trigger a short-term correction, though the long-term trend could persist,” Tran explained.
Eric Chia, a financial markets strategist at Exness, mentioned that the demand for exchange-traded funds (ETFs) contributed to the gold rally. “Gold holdings increased as ETFs added another 15 tons last week. However, inflows slowed compared to the previous two weeks. Political interference with the Fed also provided support, as a US appeals court blocked President Donald Trump’s attempt to remove Governor Lisa Cook,” Chia said.
“Geopolitical tensions also boosted gold. Ongoing conflicts in the Middle East and Eastern Europe have reinforced defensive strategies in gold,” Chia added.
