Gold prices surged at the beginning of the week on Monday morning, with the precious metal climbing nearly $50 per ounce worldwide. Meanwhile, in Dubai, 24K gold increased by almost Dh4 per gram.
According to the Dubai Jewellery Group, 24K gold opened the markets on Monday at Dh485.75 per gram, up from Dh482 per gram at the end of last week, marking a rise of Dh3.75 per gram. Likewise, 22K, 21K, and 18K gold were trading higher at Dh449.75, Dh431.25, and Dh369.75 per gram, respectively.
Spot gold was at $4,053.32 per ounce, reflecting a 1.3 percent increase at 9am UAE time. This rise is driven by increased expectations of interest rate cuts from the US Federal Reserve and concerns about a global economic slowdown.
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“Focus remains on the Fed’s upcoming actions. December’s rate-cut expectations are uncertain, due to the lack of new labor data during the government shutdown. The Fed keeps a cautious stance as inflation persists. Once the government reopens, the release of three NFP reports will be pivotal in shaping forecasts,” stated Vijay Valecha, chief investment officer at Century Financial.
Furthermore, the ongoing US Supreme Court case on tariffs is drawing significant attention.
“The Supreme Court has started hearings on the tariff validity. While decisions usually take three to six months, this case might be fast-tracked due to its political and economic significance. Removing tariffs could renew concerns over fiscal deficits, as current tariff collections help cover part of the shortfall,” Valecha added.
