Gold prices in Dubai remained flat on Wednesday morning, with most variants unchanged from the previous day’s closing.
The 24K variety, the most popular, was trading at AED 282.75 per gram, while lower karat options like 22K and 18K sat at AED 261.75 and AED 217.25 per gram, respectively.
This stability comes amidst a strong first half for gold in 2024. The precious metal has risen a significant 12%, outperforming most other major investments.
This impressive performance is attributed to a combination of factors, including continued central bank purchases, investment from Asia, steady consumer demand, and ongoing geopolitical tensions.
However, as we head into the second half of the year, a key question lingers in investors’ minds: can gold maintain this momentum, or is it starting to lose steam?
The World Gold Council (WGC) acknowledges the uncertainty in its latest report. They point out that while the global economy shows signs of slowing growth and potential interest rate cuts, inflation remains a concern.
This mixed economic picture is reflected in the gold market, where current prices seem to reflect a wait-and-see approach from investors.
The WGC believes a potential catalyst for gold prices could be a decrease in interest rates in developed countries. This would entice Western investors back into the gold market.
Additionally, ongoing geopolitical tensions and a potentially complacent stock market could see global investors continue to seek gold as a hedge against risk.
Overall, the gold market in Dubai and around the world seems to be in a holding pattern, waiting for a clear direction signal. Whether the second half brings a continuation of the first half’s strong performance or a correction remains to be seen.
