Gold prices held steady at the opening of the markets in Dubai on Wednesday, as investors ponder whether the precious metal’s momentum will persist through the second half of 2024 or if it has reached its peak.
Data from the Dubai Jewellery Group indicated that as of 9am UAE time, the price of 24K gold was trading at Dh282.75 per gram, 22K at Dh261.75, 21K at Dh253.5, and 18K at Dh217.25. These prices remained unchanged from the previous night’s close. On the global stage, gold was trading at $2,334.57 per ounce, showing a slight increase of 0.18 per cent at 9.10am UAE time.
In the first half of 2024, gold has shown impressive performance, climbing 12 per cent and outpacing most major asset classes. Factors contributing to this rise include sustained central bank purchases, strong Asian investment flows, resilient consumer demand, and ongoing geopolitical uncertainties.
The World Gold Council highlighted the central concern for the latter half of the year: can gold maintain its upward trajectory? “With a few exceptions, the global economy is showing wavering growth indicators – eager for rate cuts – amid lower but still uncomfortable inflation. And the market’s outlook is not too dissimilar. Our analysis suggests that the gold price today broadly reflects consensus expectations. However, things rarely go according to plan. And the global economy, as well as gold, seem to be waiting for a catalyst,” the Council stated in its latest report.
The report further noted, “For gold, we believe the catalyst could come from falling rates in developed markets, that attract Western investment flows, as well as continued support from global investors looking to hedge bubbling risks amid a complacent equity market and persistent geopolitical tensions.”
Investors are closely monitoring these developments, trying to gauge if the precious metal’s recent strength will continue or if adjustments are on the horizon.