On Monday, gold prices in Dubai markets opened higher, with the precious metal nearing its all-time high of $3,700 per ounce.
At 9 am UAE time, the price of 24K gold rose to Dh444.75 per gram, while 22K gold increased to Dh412.0 per gram. Similarly, 21K and 18K gold saw prices of Dh394.75 and Dh338.5 per gram, respectively.
The surge in gold prices has affected jewelry sales in Dubai and across the UAE, with some retailers reporting up to a 40% drop in sales and customer visits.
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Spot gold traded at $3,697.16 per ounce, a 0.31% increase, as markets awaited signals from the US Federal Reserve.
The market seeks direction following the US Fed’s recent 0.25 basis point rate cut, which helped maintain momentum. Gold reached record highs above $3,700, driven by the Fed’s rate cut, central bank purchases, and global geopolitical tensions.
Linh Tran, a market analyst at xs.com, stated that global geopolitics remains crucial. “Middle East tensions and the ongoing conflict in Ukraine have boosted gold as a safe-haven, impacting crypto investments. While Bitcoin is increasingly seen as ‘digital gold’ by financial institutions, capital inflow into Bitcoin is somewhat restricted,” Tran explained.
