Gold prices in the United Arab Emirates (UAE) soars to new highs this week, mirroring a global surge driven by positive inflation news in the United States.
The price of 24-karat gold, a popular variety in the United Arab Emirates, hit a record Dh295.0 per gram on Monday, up Dh2.5 from the closing price of the previous week. Significant gains were also observed in other gold kinds; the prices of 22K, 21K, and 18K per gram were Dh273.25, Dh264.5, and Dh226.75, respectively.
This increasing trend might be linked to relief in the US as new inflation figures pointed to a possible return to normalcy. The US central bank, the Federal Reserve (Fed), and investors have previously expressed alarm over growing inflation statistics. Gold prices are impacted by the US dollar’s value, which is mostly determined by the Fed’s monetary policy choices.
Investors now think that the Fed may postpone rising interest rates, which would normally weaken gold, in light of the favorable inflation report. As a result, gold’s demand has increased and prices have risen. Gold is a safe-haven asset during economic instability.
Since the start of 2024, the price of gold has increased significantly by more than Dh18 per gram. Due to the UAE’s long-standing cultural fondness for gold, investors and consumers there are probably going to be closely watching this development.
