Gold prices in the UAE soared to record levels on Wednesday morning, with the 22K variant crossing the Dh308 mark per gram, driven by global economic conditions and investor demand. The latest rise follows a trend of consistent gains in recent months, as the precious metal reached new milestones in early trading.
At 9:00 AM UAE time, the price of 24K gold surged to Dh333 per gram, up from Dh331.25 at Tuesday’s market close. Meanwhile, 22K gold jumped to Dh308.25 per gram, an increase of Dh1.5. Other variants also saw a rise, with 21K reaching Dh298.50 and 18K climbing to Dh255.75 per gram.
Spot gold continued its upward momentum, trading at $2,750.70 per ounce, marking a 1.07% increase as of 9:15 AM UAE time. Analysts have noted that gold has been on a steady rise, breaking records almost daily. As previously reported, some experts predict that gold may hit $3,000 per ounce by the first quarter of 2025.
Gold’s Resilience Amid Global Challenges
Over the past year, gold has gained more than 40% year-on-year, reflecting strong investor interest amid global uncertainty. Silver has also surged, achieving a 50% year-on-year gain following a breakout last Friday, where it closed above the resistance level of $32.50.
Ole Hansen, Head of Commodities Strategy at Saxo Bank, explained the ongoing upward trend. “Throughout the year, we have extensively discussed why 2024 would be pivotal for investment metals. While this recent rally has exceeded expectations, several factors continue to support the upward trend despite emerging challenges,” he said.
Hansen emphasized that even with rising yields and a stronger US dollar, gold and silver have shown remarkable resilience. “Despite rising yields and a stronger US dollar, gold and silver have continued their ascent… Meanwhile, the timing, pace, and depth of future rate cuts have slowed, with Federal Reserve officials signaling a more cautious approach. Yet, gold and silver remain resilient, defying these typically negative market signals,” he added.
He further noted that gold’s continued rise, despite the US dollar’s strength, has been supported by Middle Eastern haven flows and robust US economic data, which are driving capital into American risk assets.
Outlook for Gold and Silver
The rally in gold prices reflects broader investor sentiment, as many turn to precious metals as safe-haven assets during periods of economic uncertainty. Analysts expect the upward trajectory to continue as demand for gold and silver strengthens in both regional and global markets.
