Dubai: Gold prices surpass Dh320 per gram, hit new record high
Experts predict the increase in gold value to persist in future months.
On Wednesday, Dubai's gold prices leaped to a record high, growing by Dh2.75 per gram at market start. By 9 am, Dubai time, the 24K gold jumped to Dh322 per gram. That's a climb from Dh319.25 at Tuesday's market close. Its earlier record high hit Dh319.5 per gram on Tuesday. So this month alone, it has already gained almost Dh22 per gram.
Other types like 22K, 21K, and 18K have hit new records too. They're selling at Dh298.0, Dh288.5, and Dh247.25 per gram. Meanwhile, spot gold worldwide is up as well - it's going for $2,659 per gram.
US Federal Reserve's rate cuts and Middle East tension fuel the surge in value for precious metals.
Experts predict this upward trend will persist for the gold market in the next few months. They base this on renewed activity in exchange-traded fund flows and more anticipated Fed rate cuts.
DHF Capital's CEO and Asset Manager, Bas Kooijman, alluded to a potential dip in gold prices due to likely profit-taking.
The significant rise in the value of gold was triggered by preferential market conditions. Further, dovish comments from a few Federal Reserve members and a recent level reduction by the Fed played a part.
More interest rate cuts may be on the horizon. This could boost the precious metal's rising streak," he explained.
"Meanwhile, the Middle East's political climate stays tense. This could keep pushing gold's rise, as safe-haven asset demand goes up.
People keep buying gold, shown by the steady influx into gold ETFs. Plus, emerging economy central banks have robust interest in gold. This could uphold prices over time," Kooijman noticed.
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