“Global Surge Pushes Local Prices Above Dh314 as Investors Seek Safe Haven Amid Economic Uncertainty”
Gold prices in Dubai reached a new peak on Friday, continuing their upward trajectory as global rates surpassed $2,600 per ounce. According to data from the Dubai Jewellery Group, the price of 24K gold climbed to Dh314.0 per gram, exceeding the previous high of Dh313.75 per gram set just a day earlier.
The increase was reflected across other gold variants as well, with 22K gold trading at Dh290.75 per gram, 21K at Dh281.5, and 18K at Dh241.25.
The global price of gold was recorded at $2,611.93 per ounce, marking a 0.95 percent rise at 12:50 PM UAE time. This surge follows a period of volatility, where gold opened sharply higher earlier in the week but saw fluctuations after the U.S. Federal Reserve cut interest rates by 50 basis points on Wednesday.
Fadi Al Kurdi, CEO of FFA Kings, attributed the rise in gold prices to the Fed’s recent interest rate cut, which marks the first reduction in years. “While expectations point to further cuts in the coming months, Fed Chair Jerome Powell has emphasized a cautious approach to future monetary policy moves,” said Al Kurdi. He noted that a weakening U.S. dollar and declining Treasury yields have created a favorable environment for gold.
Investor sentiment towards gold is further bolstered by ongoing economic concerns in the U.S. and China, alongside rising tensions in the Middle East. These factors reinforce gold’s status as a safe-haven asset amid uncertainty, making it an appealing choice for investors looking to safeguard their wealth.
As the market evolves, the interplay between global economic indicators and central bank policies will continue to shape the landscape for gold prices, reflecting the precious metal’s enduring appeal in uncertain times.
