Gold prices in the UAE surged to yet another record high on Monday morning, with the 24K variant of the precious metal jumping more than Dh3 per gram to reach Dh273.75 per gram. This upward trend follows last week’s significant gains, highlighting the continued rally in the gold market.
The other variants also witnessed notable increases, with 22K rising to Dh253.5 per gram, 21K to Dh245.25 per gram, and 18K to Dh210.25 per gram, reflecting the widespread bullish sentiment in the gold market.
Globally, spot gold soared to $2,259.85 per ounce at 9.10am UAE time, marking a more than one per cent increase in early trade. This upward trajectory is consistent with the recent trend of gold prices, which have experienced significant gains in recent weeks.
READ:Extended Eid Celebrations: Sharjah’s Public Sector Granted 10-Day Holiday
Saqib Iqbal, an analyst at Trading.biz, anticipates that gold prices will remain volatile in the coming days, with the range expected to fluctuate between $2,140 and $2,200 per ounce throughout April. He attributes this volatility to the upcoming Federal Reserve’s April meeting, which is likely to impact market sentiment and drive price movements.
The recent surge in gold prices can be attributed to various factors, including US economic statistics and market dynamics. The Federal Reserve’s intention to cut interest rates three times in 2024, as reiterated by Federal Reserve chairman Jerome Powell during the recent FOMC meeting, has contributed to increased demand for gold as a safe-haven asset.
Despite the significant gains witnessed in the gold market in recent months, Saqib does not foresee a decline in the foreseeable future. While a temporary pullback may occur, driven by short-term market dynamics, the overall bullish sentiment and the US disinflation story are expected to support gold prices in the long run.
As investors continue to monitor market developments and economic indicators, the gold market is likely to remain a focal point of attention, with ongoing volatility and price fluctuations expected in the coming weeks.
