Gold prices rallied to a new record high in Dubai, with the 24K variant rising to Dh318.50 per gram on the first day of the trading week. September alone saw an increase of over Dh16 per gram. Other variants like 22K, 21K, and 18K also touched record highs of Dh294.75, Dh285.50, and Dh244.50 per gram respectively. The global market has seen gold trading above $2,600 per ounce since last week after the US Federal Reserve slashed interest rates by 50 basis points, with the precious metal trading at 2,627.86 per ounce at 9.15am.
The rally in gold prices has been attributed to the interest rate cuts by the Fed and geopolitical tensions in the Middle East. Michael Brown, a senior research strategist at Pepperstone, mentioned that the Fed’s aggressive rate cut of 50 bps was unexpected but in line with market expectations. As a new trading week begins, participants are assimilating the impact of the rate cut while also preparing for end-of-month/quarter flows. The Fed’s action on Wednesday reduced the target range for fed funds rate to 4.75-5.00 per cent, contrary to many forecasts.
Gold prices have been on an upward trajectory, driven by factors like interest rate cuts and geopolitical tensions. The trend continued in Dubai, with prices hitting record highs for various gold variants on the first trading day of the week. The global market has also witnessed steady growth in gold prices, with the precious metal trading above $2,600 per ounce since last week. The US Federal Reserve’s interest rate cut of 50 basis points has further fueled the rally, contributing to the positive momentum in gold prices.
The ongoing rally in gold prices is a result of various factors including interest rate cuts by the Fed and geopolitical tensions in the Middle East. Experts believe that the surprise 50 bps rate cut by the Fed has influenced the recent surge in gold prices, with the precious metal trading at elevated levels both locally and globally. Market participants are closely monitoring the situation as they navigate through the implications of the rate cut while also considering end-of-month/quarter flows. The uncertainty surrounding economic conditions and the impact of global events continue to drive the demand for gold as a safe-haven asset.
As gold prices reach new highs in Dubai and globally, investors are closely watching the market dynamics influenced by the Fed’s rate cut and geopolitical tensions. The surge in gold prices on the first trading day of the week reflects the current market sentiment towards safe-haven assets like gold. Experts anticipate continued volatility in the precious metal market as global economic conditions evolve and geopolitical tensions persist. The record highs reached by various gold variants in Dubai highlight the strong demand for gold among investors seeking stability and security in uncertain times.ICYMI: Gold prices in Dubai hit record high, 24K at Dh318.50 per gram
In conclusion, the rally in gold prices in Dubai and globally has been fueled by a combination of factors like the Fed’s interest rate cuts and geopolitical tensions. The surge in gold prices on the first trading day of the week signifies the ongoing demand for safe-haven assets in light of economic uncertainties. Market participants continue to monitor the situation closely as they navigate through the implications of the Fed’s rate cut and global events that impact the precious metal market. Gold’s status as a safe-haven asset is further reinforced by the record highs reached by various gold variants in Dubai, highlighting the strong investor interest in gold amid market volatility.
