Gold Prices in Dubai Reach New Heights
The gold prices in Dubai rose to a new all-time high on Monday afternoon, increasing by almost 5 percent per gram. The price of 22K gold reached DH415.5 per gram, while 24K gold approached the symbolic DH450 mark.
Current Gold Prices
According to the Dubai Jewelry Group, 24K gold rose to DH448.75 per gram, an increase of 4.75. Similarly, 21K gold approached the DH400 threshold, trading at DH398.5 per gram, while 18K gold was at DH341.5 per gram.
Impact on Gold Buyers
This price surge has put gold jewelry buyers in the UAE at a crossroads – should they buy now in anticipation of further increases or sell in speculation that the rally has reached its peak? Analysts suggest that 24K gold could touch DH450 per gram today or later this week. Worldwide, spot gold traded at $3,723.98 per ounce, a 1.03 percent increase from the previous day.
Factors Influencing Gold Prices
Rania Gule, a senior market analyst, attributes the recent reduction in the US Federal Reserve in September to the increase in gold prices. The decision had a significant impact on global markets, especially given the weak US labor market and slowdown in employment growth. Escalating geopolitical tensions also play a crucial role in increasing gold prices, with gold maintaining its traditional status as a safe financial asset.
Future Outlook
Historically, increased geopolitical risks have driven up demand for gold, especially when combined with relaxed monetary policy. This is likely to remain a strong supporting factor for gold prices in the short and medium term, keeping them near their historical highs. As a result, gold buyers and investors will be closely watching the market to see how prices will move in the coming days and weeks.
