Gold prices in Dubai hit an all-time high on Monday, with the 24K variant reaching Dh313.50 per gram. The other variants, including 22K, 21K, and 18K, were also trading higher compared to the previous weekend. Globally, gold was trading at $2,582.61 per ounce, showing a 0.14% increase. The increase in gold prices can be attributed to factors such as expectations of a US Federal Reserve interest rate cut, a weakening US dollar, and geopolitical tensions in the Middle East region.
The rise in precious metal prices has been consistent over the past few months, with gold breaking above the $2,530 psychological barrier last week. Market analysts predict that the bullish trend is likely to continue in the short term, with the next target being the $2,500 price mark. However, breaking below $2,565 could indicate a temporary bearish trend. The increased possibility of a 50-bps interest rate cut by the US Federal Reserve has also contributed to the positive outlook for gold prices.
Market analysts, including Vijay Valecha and Alex Kuptsikevich, believe that gold prices are on an upward trajectory, supported by factors such as improved risk appetite, a weakening US dollar, and the Fed’s potential interest rate cuts. Mohamed Hashad, chief market strategist at Noor Capital, emphasized the impact of US economic data on gold prices. The data indicating a slowdown in consumer prices has reinforced expectations of a rate cut by the Federal Reserve at its September meeting.
Overall, the outlook for gold prices remains positive in the short term, with the precious metal reaching all-time highs in both Dubai and global markets. Factors such as geopolitical tensions, expectations of a US interest rate cut, and a weakening US dollar have contributed to the rally in gold prices. Market analysts predict that the bullish trend is likely to continue, with the next target being the $2,500 price mark. Investors and traders are advised to stay updated with the latest news and market developments to make informed decisions regarding gold investments.
