Dubai: Gold prices surpass Dh320 per gram, hit new record high

Analysts expect the rally in the yellow metal to continue in the coming months

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by

Waheed Abbas

Published: Wed 25 Sep 2024, 9:32 AM

Last updated: Wed 25 Sep 2024, 10:03 AM

Gold prices in Dubai jumped to a new all-time high on Wednesday, rising Dh2.75 per gram at the opening of the markets.

At 9 am UAE time, the 24K variant of the yellow jumped to Dh322 per gram in Dubai, up from Dh319.25 per gram at the close of the markets on Tuesday. Its previous all-time high of Dh319.5 per gram was recorded on Tuesday. It has gained nearly Dh22 per gram this month so far.

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Among the other variants, 22K, 21K and 18K were also selling at all-time highs of Dh298.0, Dh288.5 and Dh247.25 per gram, respectively. Globally, spot gold was trading at $2,659 per gram.

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The rally in precious metal prices has been driven by the US Federal Reserve's interest rate cuts and geopolitical tension in the Middle East.

Analysts expect the rally in the yellow metal to continue in the coming months due to a revival in inflows to exchange-traded funds and expectations of further Fed interest rate cuts.

Bas Kooijman, CEO and asset manager of DHF Capital, said gold could be exposed to some profit-taking over the short term.

"The recent spike in gold prices followed favourable market conditions, including dovish remarks from several Federal Reserve members and the Fed's first rate cut last week. Expectations of additional interest rate cuts in the coming months could fuel a favourable environment for the precious metal to extend its uptrend over the long term," he said.

"At the same time, geopolitical tensions in the Middle East are expected to remain elevated, which could further support gold's upward trend as demand for safe-haven assets increases. Investor demand for gold remains solid, as exhibited by consistent inflows into gold ETFs. Moreover, central banks in emerging economies are displaying a strong appetite for gold, which is likely to provide support for prices in the medium term," added Kooijman.

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Waheed Abbas

Published: Wed 25 Sep 2024, 9:32 AM

Last updated: Wed 25 Sep 2024, 10:03 AM

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