Gold prices in the UAE continued to rise on Friday as global prices surged due to geopolitical tension in the Middle East and expectations of US Federal Reserve rate cuts. The 24K variant of gold rose half a dirham to Dh297.5 per gram, while 22K, 21K, and 18K were selling for Dh275.5, Dh266.5, and Dh228.5 per gram, respectively. Globally, spot gold was trading at $2,463.45 per ounce, marking a 0.7 percent increase. Experts predict a promising trajectory for gold, with potential target ranges of $2,700-$3,000, translating to Dh330-Dh365 in the upcoming months.
Vijay Valecha, CIO of Century Financial, suggested a positive outlook for gold, while Chris Weston, head of research at Pepperstone, highlighted the market’s support for gold owing to various factors, including the possibility of a weak US payrolls report and geopolitical tensions in the Middle East. Weston emphasized the potential for gold to reach a new all-time high and move closer to $2,500 in the coming days. The current scenario presents gold as a primary hedge against risk, particularly in light of escalating geopolitical tensions and economic uncertainties.
Samer Hasn, a market analyst at XS.com, attributed gold’s recent moves to a sharp contraction in US manufacturing activity and a notable increase in initial jobless claims, reinforcing the market’s expectations for multiple rate cuts this year. The rapidly escalating geopolitical tensions, especially fears of a wider regional war in the Middle East, are also contributing to gold’s upward trend and the anticipation of further gains. The combination of economic indicators and geopolitical factors is driving investors towards gold as a safe-haven asset.
The prevailing atmosphere of uncertainty and risk in global markets is further fueling the demand for gold as a safe-haven asset. The potential for US Federal Reserve rate cuts and geopolitical tensions in the Middle East are significantly impacting gold prices, with experts projecting continued gains in the near future. As investors seek protection against economic uncertainties and geopolitical risks, gold is emerging as a preferred investment choice, with prices expected to reach new highs in the coming months. Stay updated with the latest news and trends in the gold market to make informed investment decisions.
In conclusion, the surge in gold prices in the UAE and globally is attributed to a combination of geopolitical tensions, US Federal Reserve rate cut expectations, and economic indicators. Experts foresee a positive trajectory for gold, with potential target ranges indicating further price increases in the near term. As investors navigate through uncertainties in global markets, gold continues to shine as a safe-haven asset, providing a hedge against risks and market volatility. Stay informed and monitor gold prices closely to capitalize on investment opportunities and protect your portfolio in an uncertain economic environment.
