Gold prices in the UAE witnessed a significant surge this week, climbing by eight dirhams per gram and reaching an all-time high, propelled by global market dynamics and heightened demand for the precious metal.
Throughout March, gold prices experienced steady gains, increasing by approximately Dh17 per gram. Analysts anticipate this upward trajectory to persist into April, buoyed by continued global uncertainties and robust purchases by central banks.
According to data from the Dubai Jewellery Group, the 24K variant of gold concluded the week at Dh270.5 per gram, marking a notable increase from Dh262.5 per gram at the beginning of the week. Similarly, other variants including 22K, 21K, and 18K also registered higher closing prices at Dh250.5, Dh242.5, and Dh207.75 per gram, respectively.
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On the global stage, spot gold closed the week at around $2,232.75 per gram, soaring from $2,172 at the week’s commencement. This surge was fueled by expectations of interest rate cuts by major central banks and increased purchasing by central banks worldwide.
Joseph Dahrieh, managing principal at Tickmill, attributed the record-high gold prices to anticipations of interest rate cuts by central banks amidst escalating geopolitical tensions. He emphasized the role of gold as a safe-haven asset, driving up demand in times of uncertainty.
Dahrieh further emphasized that gold prices could sustain their upward trajectory in the long term, supported by anticipated interest rate cuts and continued geopolitical tensions, alongside robust central bank purchases.
The remarkable surge in gold prices underscores the metal’s enduring appeal as a store of value and a hedge against economic volatility. As global uncertainties persist, investors continue to turn to gold as a reliable asset, contributing to its ongoing rally in both local and international markets.
