Dubai: Gold prices hit a new high on Friday

Globally, the precious metal was trading at $2,611.93 per ounce, up by 0.95 per cent at 12.50pm UAE time

Waheed Abbas

Published: Fri 20 Sep 2024, 1:04 PM

Last updated: Fri 20 Sep 2024, 1:06 PM

Gold prices continued their upward journey in Dubai, hitting a new peak on Friday as global prices surpassed $2,600 per ounce.

According to Dubai Jewellery Group data, the 24K variant of the yellow metal rose to Dh314.0 per gram on Friday, surpassing its previous peak of Dh313.75 per gram reached on Thursday.

Among the other variants, 22K, 21K and 18K were trading at Dh290.75, Dh281.5, and Dh241.25 per gram, respectively.

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Gold prices opened sharply higher on Monday, but fell in the next few sessions before rallying again after the US Federal Reserve cut interest rates by 50 basis points on Wednesday.

Globally, gold was trading at $2,611.93 per ounce, up 0.95 per cent at 12.50pm UAE time.

Fadi Al Kurdi, CEO of FFA Kings, said the gold rise follows the Fed’s first interest rate cut in years.

“While expectations continue to point to several interest rate cuts during the next few months, Fed Chair Jerome Powell has emphasised that the central bank is in no rush to ease monetary policy further and has advised caution in interpreting future policy moves. Gold’s increase is also supported by a weakening US dollar and falling Treasury yields, creating a favourable environment for the precious metal,” said Al Kurdi.

“Other major central banks’ monetary policy decisions could also affect investors’ sentiment and gold’s appeal compared to other assets. Additionally, ongoing concerns about economic slowdowns in the US and China, coupled with rising tensions in the Middle East, continue to contribute to gold’s attractiveness as a safe-haven asset,” he added.

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