Dubai Gold Prices Hit Record High as Rally Continues

The Dubai gold prices are showing no signs of slowing on Wednesday, as prices hit another all-time high at the opening of the Dubai Market due to global market uncertainty and investor demand. 

As per the data from Dubai Jewellery Group, 24K gold opened at Dh426.0 per gram. However, it was closed at Dh424.25 per gram on Tuesday. So, it marks the second consecutive day of record highs in the bullion trade of the emirate.

Other popular gold variants also experienced an upward trend. We have mentioned the prices of those variants below: 

• 22K opened at Dh394.5 per gram
• 21K at Dh378.25 per gram
• 18K at Dh324.25 per gram

On the other hand, spot gold traded at $3533.24 per ounce at 9:30 am UAE time with a 0.15% increase. However, the expectation of an imminent change in the US monetary policy supports this increase. 

Why Are Dubai Gold Prices Rising?

Market analysts credit the sustained rally to many factors. Linh Tran, market analyst at XS.com, shared that the declining real yields and investor appetite for safe-haven assets are boosting the surge. In addition, the rising speculation that the US Federal Reserve may soon implement interest rate cuts is also accelerating the price growth. 

Trans explained, “After setting new records high, the precious metal is attracting investors due to global uncertainty and capital inflow. Central bank purchases and strong demand in Asia, especially from China and India, are providing long-term support.”

Central Banks and Asian Demand Boost Rally  

Increased central bank purchases are also supporting the gold price because many countries diversify their reserves away from the US dollar. In addition, physical demand from Asia, like India and China, is strong, which is empowering the position of gold as a reliable hedge. 

Suppose the upward trend persists without major profit-taking. In that case, experts predict that 22K gold could soon surpass the Dh400 per gram mark. It is a psychological achievement for the UAE traders and customers. 

What This Means for UAE Buyers

This surge highlights the continued role of Dubai as a safe haven asset and cultural staple for Dubai residents and investors. However, a high price may impact the jewelry demand in the short run. Still, they will strengthen the global position of the emirate as the leading hub for bullion trade. 

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