Gold prices in Dubai soared past the Dh300 mark once again on Friday evening, reaching a record high driven by a global rally that saw prices hit $2,500 per ounce. The surge in prices is attributed to growing expectations of interest rate cuts by the U.S. Federal Reserve in September and escalating tensions in the Middle East.
As of Friday evening, the 24K variant of gold was trading at Dh302.0 per gram in Dubai. Other variants also saw significant increases, with 22K and 21K both selling at Dh270.75 per gram, and 18K trading at Dh232.0 per gram. This marks the second time gold has crossed the Dh300 per gram threshold this year, following a previous peak of Dh300.5 per gram on July 17, 2024.
Analysts predict that gold prices could continue to rise in the coming months, potentially reaching Dh365 per gram. The increase is largely due to ongoing geopolitical tensions in the region and the anticipated interest rate cuts by the Federal Reserve.
Alex Kuptsikevich, a senior market analyst at FxPro, noted that gold has been on a steady upward trajectory since the end of last week, with the metal attempting to consolidate above $2,470 per troy ounce on the spot market for the third time in 30 days.
“Gold has moved in tandem with equities this month, but it is worth noting that it fell less aggressively during the panic and outpaced the rally. So, gold is riding on a global recovery in demand for risk assets, but it has the fundamental support in its arsenal that has pushed the price to repeated all-time highs since March,” Kuptsikevich said.
He added that the current trend suggests a bullish outlook, with a potential breakout forming as gold continues to rally from its May lows and encounters local resistance at $2,475.
Looking ahead, Kuptsikevich forecasts that gold could reach even higher levels, with long-term targets between $2,800 and $2,900 per ounce.
The recent surge in gold prices underscores the growing economic uncertainty and investor demand for safe-haven assets amidst a volatile global market landscape.
