Gold prices extended their upward trend on Tuesday, reaching a six-month high, according to data from the Dubai Jewellery Group. 

The 24K gold opened at Dh244.0 per gram, while 22K, 21K, and 18K were trading at Dh226.0, Dh218.75, and Dh187.5 per gram, respectively.

Global Market Impact:

Internationally, spot gold surged to $2,015.65 per ounce, marking a six-month peak. 

The rally is attributed to expectations that the US Federal Reserve’s decision to halt interest rate hikes will restrain the dollar and yields.

Market strategists at Saxo Bank, Charu Chanana, and Redmond Wong highlighted that gold prices surpassed the October peak, reaching $2,015 and hitting a six-month high. 

They noted technical analysis pointing to the next barrier at $2,039, with further potential up to the previous peak of around $2,070-78.

Factors Driving Gold’s Rise:

Wael Makarem, financial markets strategist lead at Exness, explained that gold’s ascent is fueled by the consensus that the Federal Reserve has largely concluded its rate hikes and expectations of a rate cut in the second quarter of the following year. 

A weaker US dollar, declining US yields, and a slowing global economy further enhance gold’s appeal as a safe-haven asset.

Impact of US Economic Data:

Makarem emphasized that this week’s US economic data, particularly regarding GDP growth and inflation, could influence sentiment and subsequently impact gold prices. 

The ongoing developments in the global economic landscape contribute to the positive outlook for gold as a key investment asset.