Gold prices in the UAE are expected to rise beyond Dh310 per gram in the near future due to increasing geopolitical volatility and uncertainty surrounding the US Federal Reserve’s decision on interest rate cuts. Analysts have advised investors to proceed with caution after the yellow metal hit nearly a record high recently. Currently, the 24K variant is trading at Dh292.75 per gram, while other variants like 22K, 21K, and 18K are also seeing an upward trend in prices.
Spot gold prices are currently at $2,428.05 per ounce, with predictions suggesting that it could reach $2,500 soon. Shadi Mashkok, CEO of Grand Capital, believes that gold could hit $2,950 as people seek safe assets amidst global economic uncertainties. This could potentially push the 24K variant over Dh310 per ounce in the upcoming months. Mashkok also anticipates a shift of investor assets from the US dollar to new currencies, potentially weakening the greenback and strengthening gold prices.
Shadi Salloum, regional director for Mena at XS.com, highlights the dominance of gold and bitcoin as the main asset classes driving the market this year. Gold has seen a significant rise from $2,200 to $2,450, driven by demand and central bank buying, as well as ongoing geopolitical tensions. Salloum predicts gold to trade within the range of $2,391 to $2,450 in the coming weeks, with a potential spike to $3,000 in case of unexpected events. He advises investors to trade cautiously and avoid large positions due to the volatile nature of gold.
Swiss bank Julius Baer notes a shift in gold demand, with Chinese investors and the People’s Bank of China showing increased interest and willingness to pay higher prices compared to western investors. The political motivations behind central bank purchases are contributing to the upward trajectory of gold prices. The bank suggests that western investors may be opting for safer alternatives like high-grade bonds, thereby making way for increased demand from eastern markets.
In conclusion, the outlook for gold prices in the UAE and globally remains bullish due to geopolitical uncertainties, central bank buying, and a shift in investor sentiment towards safe-haven assets. As the market continues to navigate through volatile conditions, investors are advised to approach gold trading with caution and avoid excessive leverage. With potential price targets surpassing $3,000, staying informed about market developments and global events will be crucial for making informed investment decisions in the precious metal sector.
