Dubai: Gold prices recover in early trade, gain Dh1 per gram
Gold price in Dubai witnessed a turnaround in early trade on Wednesday following a drop of Dh4 per gram the past day. Data from the Dubai Jewellery Group indicates that at 9AM, the 24K variation of the associated comfort was moving at Dh317 per gram, which is up by Dh1 when compared to the last night cover.
Other variants also opened higher where 22K was going for Dh293.5, 21K Dh284 and 18K Dh243.5 per gram.
However, spot gold prices were still unchanged at $2,620.57 per ounce as at 9:10 AM UAE time. This stability came after a drop of more than 1% Tuesday night that was caused by falling hopes of the US Federal Reserve powering out a deep cut in interest rates.
It was during the month of September that the Fed Reserve commenced the cycle of reducing the interest rates lowering the federal fund rates by 50 basis points alongside a guidance suggesting further cuts become due in the year 2025. This was taken as a good move considering inflation issues in the MENA countries and the falling oil prices.
The gold prices had recently peaked all time high levels but started declining and fell sharply from $2,670 to $2,620 within some few weeks. In spite of this slippage, the experts still view that gold’s value will continue to grow.
According to their estimation, dollar bullish sentiment driven by the Fed’s rate cuts and US elections could push gold primarily to 2700 in November. Not only this, but also current estimates indicate that gold price per ounce could hit $3,000 come the first quarter of the next calendar year as per the position of this article, which clearly indicates that gold is easily and highly marketable in the present economic situation.
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