Gold prices surged by Dh2 per gram in Dubai at the start of the markets on Wednesday, with prices surpassing $2,400 per ounce.
In the UAE, the 24K gold variant was trading at Dh292.75 per gram at 9 am UAE time on Wednesday, up from Dh290.75 at the market close on Tuesday. Other variants also saw an increase, with 22K trading at Dh271.25, 21K at Dh262.5, and 18K at Dh225.0 per gram.
Globally, spot gold was trading at $2,416.88 per ounce, marking a 0.34% rise ahead of significant US economic data that could impact the Federal Reserve’s rate cut decisions.
Analysts predict that gold prices will remain elevated due to several factors: uncertainty surrounding the US elections following President Joe Biden’s decision to pull out, geopolitical tensions worldwide, and increased demand from India after the import duty was reduced from 15% to 6%.
George Pavel, general manager at Capex.com Middle East, noted that gold prices rose after recent declines caused by a stronger dollar. He highlighted that the market is preparing for volatility due to upcoming key US economic data, which could offer insights into inflation trends.
Speculation around Donald Trump’s potential win in the upcoming US presidential election has heightened consumer inflation expectations, potentially boosting the US dollar.
