Dubai: Gold prices hit all-time high; will prices rise further?
On Monday, as Dubai’s gold traders predicted, the gold price went through the roof with the value of 24K gold hitting Dh 422.25 per gram. Dh 425 per gram was the predicted value accessed by the Dubai Jewelry Group with the previous value set at Dh 420 per gram.
The value of 22K gold was Dh 391. 25, 21K was worth Dh 375, while 18K gold was Dh 321.25 gold. On Tuesday, spot gold was worth 3,495.79 per ounce with an additional 1.39% increase.
People more often buy gold coins, bars, and other forms of jewelry, with more emphasis on value, because the price of gold is at an all-time high and predicted to rise due to the fixed low rate of council bank interest.
Other than that, a lot of people with relatives in the UAE see gold as a way to exchange value due to inflation. The gold jewelry, in this case, is the most sought after due to both the low council bank interest and inflation the UAE is currently settling at.
The primary factors that appear to be driving the substantial increase in gold price in recent years are the increase in gold bought by the central bank, the interest rate, and other prevailing global factors.
As long as there is ongoing conflict along with trade and central bank purchasing, precious metals will become increasingly more expensive in Dubai and abroad, analysts predict.
Diamond Bank's sentiment is strengthened by the persistent expectation that the Fed is dovish amid the pressure from Trump, while the broader equity market is losing steam as the enthusiasm towards AI is becoming disturbing.
Pulse sentiment indicates that the Fed is becoming conservative, particularly the weaker jobs sentiment and the pressure on the dollar. The dollar is trading around a five week low, and sentiment in the market is trading on bond markets with investments.
The demand in gold increases and replaces bond market investments from lower sentiments towards equity positions. The World Gold Council noted the Jackson Hole symposium as an example that intuitively shows the positive correlation with almost all asset classes.
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