UAE: Gold prices at an all-time high, gain Dh8.50 since start of the year

Yellow metal rallied to a fresh record on Wednesday, building on stellar momentum driven mostly by bets for US monetary easing

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by

Waheed Abbas

Published: Thu 7 Mar 2024, 7:58 AM

Last updated: Thu 7 Mar 2024, 8:32 AM

Gold prices rallied to a record high on Wednesday, rising by Dh1.50 per gram at the close of the UAE markets.

The Dubai Jewellery Group data showed 24K rising to Dh259 per gram on Wednesday evening, up Dh1.50 per gram. While 22K, 21K and 18K closed at Dh240, Dh232.25 and Dh199 per gram, respectively.

In the UAE, precious metal prices have increased by Dh8.5 per gram since the start of the year.

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Globally, yellow metal rallied to a fresh record on Wednesday, building on stellar momentum driven mostly by bets for US monetary easing. Spot gold gained 0.89 per cent to $2,147.3 per ounce as of 1.45 am UAE time. It hit an all-time high of $2,148.99 earlier in the session.

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Tobi Opeyemi Amure, an analyst at Trading.Biz, said the precious metal prices reached an all-time high as investors eagerly anticipate a potential Federal Reserve interest rate cut in June.

“The current market conditions, with a weakening dollar and the anticipation of a Fed rate cut, have created a perfect storm for gold prices. We expect this bullish trend to continue in the near term, as investors seek safe-haven assets amid economic uncertainties,” said Tobi.

He added that the precious metal’s rally has been fueled by several factors, including safe-haven demand amid geopolitical tensions in the Middle East, strong buying by central banks globally and expectations of a transition from tightening to easing monetary cycle.

Rania Gule, market analyst at XS.com, said Federal Reserve Chairman Jerome Powell will support keeping interest rates in the range of 5.25-5.50 per cent until he sees evidence that inflation will return to the desired rate of 2 per cent.

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Waheed Abbas

Published: Thu 7 Mar 2024, 7:58 AM

Last updated: Thu 7 Mar 2024, 8:32 AM

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