Gold Prices Reach New Heights
The gold rally continued as prices reached a new all-time high at the opening of the markets in Dubai on Wednesday. According to the Dubai Jewellery Group, 24K gold was trading at DH426.0 per gram, compared to DH424.25 at the close of the markets on Tuesday. This marks the second consecutive day of record-high prices.
Current Gold Prices
The prices of other variants of gold were also high, with 22K gold opening at DH394.5 per gram, 21K at DH378.25, and 18K at DH324.25 per gram. Spot gold was trading at $3,533.24 per ounce, with a 0.15 percent increase at 9:30 a.m. UAE time, due to expectations of interest rate cuts by the US Federal Reserve.
Market Expectations
If the upward trend continues and there is no profit-taking, the price of 22K gold is expected to soon exceed DH400 per gram. The gold market is being driven by a combination of macroeconomic factors and capital flows, with investors attracted to the precious metal due to expectations of monetary easing by the US Federal Reserve, falling real yields, and increasing demand for safe-haven assets amidst global economic uncertainties.
Central Bank Purchases
Gold is also being supported by persistent purchases from central banks, as many countries seek to diversify their foreign exchange reserves and reduce their dependence on the US dollar. Additionally, physical gold demand remains strong in Asia, particularly in China and India, providing long-term support for the metal.
