Gold prices in Dubai climb over Dh2 per gram, reaching a 3-month high
Gold rises on a weaker US dollar and expectations of 2024 Federal rate cuts
Gold prices experienced a notable rally, surging by more than two dirhams per gram and reaching over a 3-month high during Thursday’s market opening.
According to data from the Dubai Jewellery Group, the 24K variant of gold was traded at Dh252.75 per gram on Thursday morning, a significant increase from the previous night’s closing rate of Dh250.5 per gram. Other variants, including 22K, 21K, and 18K, were also actively traded at Dh234.0, Dh226.5, and Dh194.0 per gram, respectively.
At 9.10 am UAE time, spot gold recorded a 0.33% increase, reaching $2,086.69 per ounce. This surge marked the highest level since December 4, with gold appearing poised to achieve a 14% gain, making it the best-performing year in three.
The ongoing rally in gold prices is attributed to the weakening US dollar and the anticipation of interest rate cuts by the US Federal Reserve in 2024.
The current high prices have spurred consumers in the UAE to capitalize on the market conditions by selling their gold holdings and jewelry to profit from the elevated rates. The trend is to repurchase gold later when prices are expected to decrease.
Diego Colman, contributing strategist at dailyFX, highlighted the breach of a critical resistance region in gold prices, ranging from $2,070 to $2,075. Colman suggested that if the bullish breakout is sustained, with prices consolidating upward, there may be increased confidence among bulls to target all-time highs near $2,150. However, he cautioned that a downturn could lead prices towards $2,050, with a focus on $2,010 if weakness persists.
As gold continues its upward trajectory, investors and consumers closely monitor market dynamics, assessing potential shifts and determining strategic positions.
