Gold Prices in the UAE opened higher on the first trading day of the week, reflecting a positive trend in the global market. According to the Dubai Jewellery Group, 24K gold was trading at Dh296.75 per gram at the start of the markets on Monday, compared to last week’s close of Dh296.0 per gram. Other gold variants also saw increases, with 22K, 21K, and 18K trading at Dh274.75, Dh266.0, and Dh228.0 per gram, respectively.
Globally, spot gold was trading at $2,447.51 per ounce, up 0.26 percent at 9:16 AM UAE time. Dilin Wu, a research strategist at Pepperstone, highlighted the strong underlying bullish factors for gold, predicting a potential new all-time high in the market.
“Looking at the US Federal Reserve’s policy stance, even though June’s US core Personal Consumption Expenditure (PCE) came in higher than expected, it hasn’t derailed the near certainty of a September rate cut, as confirmed by the FOMC meeting and Fed chair Jerome Powell’s comments. Lower interest rate is definitely positive for gold, which, like a steadfast lighthouse in a storm, stands firm as a zero-yield asset,” explained Wu.
Wu also pointed to geopolitical tensions and rising US election uncertainties as significant factors. “The recent flare-ups in the Middle East and the narrowing support gap between Kamala Harris and Trump, with recent polls erasing Trump’s lead in swing states, are putting the dollar under pressure. This safe-haven demand and expectations of a weaker dollar are like strong winds at gold’s back, pushing prices higher,” he noted.
The World Gold Council’s report on July 30th indicated that global gold demand in Q2 and official gold reserves for the first half of the year reached all-time highs. This surge in demand further solidifies the foundation for elevated gold prices.
“Overall, the economy and geopolitical instability, combined with robust global gold demand, are set to keep gold prices high,” Wu concluded.
The UAE’s gold market is a significant player in this global trend. Investors and buyers in Dubai are closely watching these developments, with many seeing this as an opportunity to invest in a historically stable asset.
The recent uptick in gold prices in the UAE is indicative of broader economic sentiments and market movements. With the combination of favorable monetary policies, geopolitical uncertainties, and strong demand, gold’s appeal as a secure investment continues to grow.
As the week progresses, market analysts and investors alike will be keeping a keen eye on further developments, both locally and globally, that could impact gold prices. For now, the outlook remains bullish, with many predicting sustained growth in the value of the yellow metal.
