At the start of the week, gold prices in the UAE reached an all-time high, driven by global trends and expectations of slowing US inflation.
On Monday morning, the 24K gold variant rose by Dh2.5 per gram, reaching Dh295.0 per gram. This is a notable increase from last week’s close of Dh292.5 per gram. Other variants, such as 22K, 21K, and 18K, also saw significant price increases, trading at Dh273.25, Dh264.5, and Dh226.75 per gram, respectively.
Factors Influencing the Surge
The rise in gold prices correlates with the global spot gold price, which was trading at $2,438.29 per ounce, reflecting a 0.74% increase. The primary driver behind this surge is the latest US inflation data, indicating a positive trend towards economic stabilization.
Naeem Aslam, Chief Investment Officer at Zaye Capital Markets, highlighted that recent economic policies and geopolitical events, including trade agreements between Russia and China, have further influenced the gold market.
The move towards trading in their own currencies by these nations emphasizes the importance of gold reserves in maintaining currency value.
Regional and Global Impacts
India’s ongoing trade in its own currency with Russia and potential currency exchanges involving the UAE with China, India, and Russia, underscore the increasing demand for gold.
As countries seek to diversify their currency reserves with gold, the precious metal’s value and stability are being reinforced on both regional and global scales.
