Gold prices surged to an unprecedented peak on Wednesday, climbing by AED 1.50 per gram at the close of the UAE markets.
According to data from the Dubai Jewellery Group, 24K gold reached Dh259 per gram on Wednesday evening, marking an AED 1.50 per gram increase. The closing prices for 22K, 21K, and 18K stood at AED 240, AED 232.25, and AED 199 per gram, respectively.
In the UAE, the prices of precious metals have risen by AED 8.5 per gram since the beginning of the year.
Internationally, the price of the yellow metal reached a new record on Wednesday, continuing its impressive momentum driven largely by expectations of US monetary easing. Spot gold saw a 0.89% increase, reaching $2,147.3 per ounce at 1:45 am UAE time and hitting an all-time high of $2,148.99 earlier in the session.
Analyst Tobi Opeyemi Amure from Trading.Biz noted that the surge in precious metal prices coincided with investors anticipating a potential Federal Reserve interest rate cut in June.
“The current market conditions, with a weakening dollar and the anticipation of a Fed rate cut, have created a perfect storm for gold prices. We expect this bullish trend to continue in the near term, as investors seek safe-haven assets amid economic uncertainties,” said Tobi.
He further explained that the rally in precious metal prices has been driven by various factors, including safe-haven demand amidst geopolitical tensions in the Middle East, robust buying by central banks globally, and expectations of a shift from a tightening to an easing monetary cycle.
Rania Gule, a market analyst at XS.com, stated that Federal Reserve Chairman Jerome Powell is likely to support maintaining interest rates within the range of 5.25-5.50% until there is evidence of inflation returning to the desired rate of 2%, according to Khaleej Times.
