Gold prices in the UAE saw a significant increase at the market opening, reflecting geopolitical tensions in the Middle East and also the Federal Reserve’s statements regarding interest rates.
Analysts expect gold prices to continue rising in the coming days. Here are the key details:
Gold Prices in the UAE (per gram):
- 24K gold opened at Dh227.50 at 9 a.m., up from Dh226.75 at the previous market close.
- Other variants also saw price increases:
- 22K: Dh210.75
- 21K: Dh204
- 18K: Dh174.75
Global Gold Prices:
- The spot gold price increased by 0.2%, reaching $1,879.52 per ounce.
- This rise is attributed to the Federal Reserve’s cautious approach to interest rates, causing the US dollar and Treasury yields to weaken.
- Investors are eagerly awaiting an upcoming inflation report for further clarity on future policy decisions.
Factors Driving Gold Prices:
- Gold continues to benefit from the Federal Reserve’s preference for keeping interest rates stable within the 5.25% to 5.50% range until the year-end.
- Ongoing clashes in the Middle East, particularly in Palestine, have further contributed to gold’s upward trajectory.
- Analysts believe that gold prices may remain high in the near term, as the appeal of gold as a safe-haven asset remains strong amid risk aversion and the demand for such assets.
- The Federal Reserve’s neutral interest rate stance is expected to sustain gold’s upward trajectory.
Gold prices are experiencing a surge due to a combination of global factors, including geopolitical tensions in the Middle East and the Fed’s cautious approach to interest rate changes.
Please note that gold prices may vary and fluctuate further in response to evolving circumstances.
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