Gold prices surged to a record high on Wednesday, marking a significant increase in precious metal values in the UAE markets. Here’s a summary of the latest developments:
- UAE Market Performance: According to data from the Dubai Jewellery Group, gold prices witnessed a notable rise, with 24K gold reaching Dh259 per gram at the close of the market on Wednesday evening. This represents an increase of Dh1.50 per gram. Other gold categories also saw gains, with 22K, 21K, and 18K gold closing at Dh240, Dh232.25, and Dh199 per gram, respectively.
- Year-to-Date Increase: Gold prices in the UAE have seen a significant uptrend since the beginning of the year, rising by Dh8.5 per gram.
- Global Trends: The rally in gold prices is not limited to the UAE, as the precious metal reached a fresh record globally on Wednesday. Spot gold surged by 0.89 per cent to $2,147.3 per ounce, hitting an all-time high of $2,148.99 earlier in the session. This momentum is largely attributed to expectations of US monetary easing.
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- Factors Driving the Rally: Analysts point to several factors driving the surge in gold prices. Anticipation of a potential Federal Reserve interest rate cut in June has contributed to bullish sentiment among investors. Additionally, a weakening dollar and geopolitical tensions in the Middle East have spurred demand for safe-haven assets like gold. Central banks’ increased buying of gold and expectations of a shift from tightening to easing monetary policies further support the upward trend in gold prices.
- Market Outlook: Analysts suggest that Federal Reserve Chairman Jerome Powell is likely to maintain interest rates within the range of 5.25-5.50 per cent until there is evidence of inflation returning to the desired rate of 2 per cent. This stance is expected to support the continued rise in gold prices in the near term.
In conclusion, the record-high gold prices in the UAE and global markets reflect investors’ confidence in the precious metal amid economic uncertainties and expectations of monetary policy adjustments by central banks.
