Thu, Nov 21, 2024 | Jumada al-Awwal 19, 1446 | DXB ktweather icon0°C

Dubai: 22K gold crosses Dh300 per gram for the first time as prices hit new all-time high

Expert believes the $2,700 level is well within reach before the end of October

Published: Thu 17 Oct 2024, 9:30 AM

Updated: Thu 17 Oct 2024, 9:40 AM

Top Stories

Photo: KT file

Photo: KT file

Gold prices jumped to an all-time high in Dubai on Thursday as 22K surpassed Dh300 per gram for the first time.

According to Dubai Jewellery Group data, 24K gold jumped to Dh324.25 per gram at the opening of the markets on Thursday, up from Dh323.75 per gram at the close of the markets on Wednesday.

Stay up to date with the latest news. Follow KT on WhatsApp Channels.

The yellow metal's 22K variant opened at Dh300.25 per gram, up Dh0.50 per gram. Similarly, 22K and 18K also opened higher at Dh290.75 and Dh249.25 per gram, respectively.

Globally, gold was trading at $2,678.58 per ounce, up 0.17 per cent at 9.10am, UAE time.

[Editor's Note: For real-time gold rates, click on the widget below or visit KT's dedicated Trading News page here.]

Dilin Wu, research strategist at Pepperstone, said gold bulls are gaining strength. Prices hit all-time highs in most G10 currencies and hovered just below historical peaks against the US dollar.

“This surge reflects real demand for gold rather than just currency dynamics. I believe the $2,700 level is well within reach before the end of October. Uncertainty surrounding the US economic outlook continues to drive up gold prices. With initial jobless claims exceeding expectations and Federal Reserve Governor Christopher Waller warning that hurricanes and strikes could reduce October’s nonfarm payrolls by up to 100,000, the risk of missteps in future Fed rate hikes has increased.

“Coupled with a massive $1.8-trillion US deficit, these factors have intensified concerns over the economic trajectory, pushing investors toward gold as a safe haven amid rising volatility and unclear monetary policy,” said Wu.

In the absence of significant geopolitical developments, she said three factors will be pivotal for gold’s trajectory.

“First is US retail sales and the upcoming speeches from Fed officials. If retail sales fall short of the expected 0.3 per cent month-over-month increase, perhaps to 0 per cent, and the Fed's stance on rate cuts remains ambiguous, this could provide a further boost for gold bulls. Second is the pricing of the US election. With Trump's rising odds, the ‘Trump trade’ favouring a stronger dollar could weigh on gold, with support anticipated around $2,660. Finally, China’s economic outlook plays a significant role,” she said.

ALSO READ:



Next Story