Dubai: Gold prices jump in early trade on New Year, set to stay high in 2025

The yellow metal surged around 27% last year due to US rate cuts, central bank buying and geopolitical tensions

Waheed Abbas

Published: Wed 1 Jan 2025, 9:59 AM

Last updated: Wed 1 Jan 2025, 3:44 PM

Gold prices jumped more than Dh1 per gram at the opening of the markets on the first trading day of 2025.

According to Dubai Jewellery Group data, the 24-carat variant of the yellow metal rose Dh1.75 to Dh318.0 per gram on Wednesday morning compared to last night's close of Dh316.25 per gram, and the 22-carat variant rose Dh1.5 per gram to Dh294.5. Among other variants, 21-carat and 18-carat opened higher at Dh285.0 and Dh244.5 per gram, respectively.

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Globally, spot gold closed last night at $2,624.49 per ounce as commodity, currency and stock markets were closed on Wednesday due to the New Year holiday.

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The yellow metal surged around 27 per cent last year, hitting a record high of $2,790 per ounce due to US rate cuts, central bank buying and geopolitical tensions.

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

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Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said gold had a stellar year and could see more gains in case of a downside correction in global equity markets.

Analysts expect demand for the safe-haven metal will stay strong for the yellow metal due to geopolitical tension in the Middle East and other regions around the world, continued buying by central banks, and US debt worsening and deficit growing.

Analysts expect prices to reach $3,000 per ounce in 2025 due to these factors.

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