Dubai: Gold prices surge, expected to rise further in the medium term

Gold Prices Continue to Surge in Dubai, Driven by Global Economic Uncertainty

Gold continued to rally on Friday, rising to Dh323.25 per gram in early trade.

The 24K variant of the yellow metal rose Dh1 per gram to Dh323.25 per gram on Friday morning, according to data from the Dubai Jewelery Group. Meanwhile, 22K, 21K and 18K sold higher at Dh299.5, Dh289.75 and Dh248.5 per gram respectively.

Globally, spot gold was trading 0.38 percent lower at $2,662.59 an ounce.

Oliver Stevens, product development and market expansion manager at Flow Community, said gold was driven by market expectations of further interest rate cuts this year. This is especially due to last week’s Federal Reserve meeting and dovish comments from central bank members this week. Investors are now pricing in a 60 percent probability of an additional 50 basis points cut in November.

“Markets are looking forward to upcoming US macroeconomic data releases, including the PCE report, final Q2 GDP figures, weekly initial jobless claims and durable goods orders. Federal Open Market Committee (FOMC) members’ speeches may also be scrutinized. These factors will affect gold price movements and reduce volatility in the short term. However, the medium-term outlook for gold remains positive given the general easing cycle adopted by many central banks,” Stevens said.

“Furthermore, persistent concerns about China’s economic recovery, despite recent stimulus measures, have heightened fears of a global economic slowdown. This uncertainty is prompting more investors to seek safe-haven assets such as gold. Additionally, geopolitical risks—particularly rising tensions in the Middle East—are increasing gold’s appeal.” Stevens said.