Gold prices in Dubai experienced a notable rise on Friday, driven by heightened geopolitical tensions in the Middle East and increasing expectations of interest rate cuts by the US Federal Reserve later this year.
As of Friday afternoon, the 24K variant was trading at Dh286.25 per gram, marking an increase of Dh2 from the previous day’s closing price. Meanwhile, other variants such as 22K were priced at Dh265 per gram, 21K at Dh256.50, and 18K at Dh220.
Since Tuesday, gold prices in Dubai have climbed by Dh5 per gram, reflecting the global uncertainty and market dynamics. Internationally, spot gold was trading at $2,366.3 per ounce, up by 0.23 percent.
Joseph Dahrieh, managing principal at Tickmill, noted that gold prices edged up amidst uncertainty surrounding the Federal Reserve’s interest rate decisions. He highlighted that while Federal Reserve officials lean towards a single rate cut, market speculation suggests the possibility of two cuts due to subdued inflation and economic conditions.
Chris Weston, head of research at Pepperstone, emphasized the cautious trading environment within a defined price range of $2,430 to $2,285. Weston anticipates that these levels will persist until there is a clearer signal to adjust gold allocations in broader investment portfolios.
