In a significant market movement, gold prices in Dubai surged over Dh3 per gram on Wednesday morning, reaching Dh299 per gram in early trading sessions.
According to the Dubai Jewellery Group, the price of the 24K gold variant rose by Dh3.25 per gram to Dh299.9 at 9 am on Wednesday. Other variants such as 22K, 21K, and 18K were trading at Dh276.75, Dh268.0, and Dh299.75 per gram, respectively. Over the past 24 hours, gold prices in Dubai have increased by Dh5 per gram.
On a global scale, spot gold traded at $2,466.35 per ounce, achieving a record high as investors turned to the safe-haven asset following remarks from US Federal Reserve officials that bolstered expectations of an interest rate cut in September.
Analysts predict the next target for gold prices to be around $2,600 per ounce.
“It’s been a momentous day for the gold market and client flows have been huge – where we’ve seen momentum-focused traders adding to long positions on the break of the prior all-time high (ATH) of $2,450, while others see the move as having gone too far too soon and are selling into the rally,” said Chris Weston, head of research at Pepperstone.
“Technically, gold has held a range of $2,450 to $2,285 since mid-April, but on the day, we see price breaking out topside emphatically, and where a measured move of the range suggests a target closer to $2,600,” he said.
He added that the market has unwavering confidence that the Fed is about to embark on an easing cycle starting in September.
