Gold prices soared at the market’s opening on Thursday, escalating over two dirhams per gram and hitting a peak not witnessed in three months.

As per data from the Dubai Jewellery Group, the 24K variant of gold surged to Dh252.75 per gram in Thursday’s early trading, a notable increase from the previous night’s closing rate of Dh250.5 per gram. 

Other variants also showed substantial gains, with 22K, 21K, and 18K trading at Dh234.0, Dh226.5, and Dh194.0 per gram, respectively.

Gold Reaches Heights Since December:

At 9:10 am UAE time, spot gold marked a remarkable 0.33 percent increase, reaching $2,086.69 per ounce. 

This peak represents the highest point since December 4, echoing the earlier record high of $2,135.40. The metal seems poised to achieve its most successful year in three, boasting a 14 percent gain.

The wave in gold prices can be attributed to the weakening US dollar and speculations surrounding potential interest rate cuts by the US Federal Reserve in 2024.

Consumer Response in UAE to High Prices:

In response to the high prices, consumers in the UAE have been observed selling their gold holdings and jewelry to capitalize on the elevated rates. Many intend to repurchase when prices undergo a downward trend.

Diego Colman, a contributing strategist at dailyFX, highlighted the breach of a critical resistance region between $2,070 and $2,075 for gold. 

He suggested that if the bullish trend continues and prices consolidate upward, the next target for bulls could be the all-time highs near $2,150.