Dubai, UAE – Gold prices in the UAE have climbed significantly on Friday, with the 24K variant reaching Dh297.5 per gram. This surge follows a global rise in gold prices due to geopolitical tensions in the Middle East and anticipated rate cuts by the US Federal Reserve.
The 22K, 21K, and 18K variants are trading at Dh275.5, Dh266.5, and Dh228.5 per gram, respectively. Globally, spot gold is priced at $2,463.45 per ounce, reflecting a 0.7% increase.
Vijay Valecha, Chief Investment Officer at Century Financial, forecasts that gold could potentially reach between $2,700 and $3,000 per ounce in the coming months, translating to Dh330-Dh365 per gram. This outlook is supported by expectations of further rate cuts and escalating geopolitical tensions.
Chris Weston, Head of Research at Pepperstone, noted that a weak US payroll report and rising unemployment rates could drive gold prices even higher. He emphasized that geopolitical events in the Middle East could also provide additional support for gold as a hedge against market volatility.
Samer Hasn, Market Analyst at XS.com, attributed the rise in gold prices to recent US economic data, including a larger-than-expected contraction in manufacturing activity and a significant increase in jobless claims. These factors contribute to market expectations of multiple rate cuts by the US Federal Reserve this year.
