The price of gold in the UAE rose to a one-week high on Thursday morning, increasing by Dh1 per gram across various karats. The 24K gold was trading at Dh239.25 per gram, up by Dh1.50 from yesterday morning’s opening rates. Similarly, 22K, 21K, and 18K gold were trading at Dh221.50, Dh214.50, and Dh183.75 per gram, respectively, at 9 am UAE time.
The rise in gold prices in the UAE is in line with the global increase, which is attributed to the weakening of the US dollar. Spot gold was up by 0.21 per cent, reaching $1,197.19 per ounce at 9:30 am UAE time.
Analysts expect that gold may experience volatility in the coming period as the US Federal Reserve has hinted at the possibility of another interest rate hike this year. The Fed recently raised its rates by 25 basis points to a range of 5.25 per cent to 5.5 per cent, marking the highest interest rate in 22 years. This move was largely anticipated by market participants given recent projections and comments from various officials, including Chairman Jerome Powell during the inter-meeting period.
Naeem Aslam, Chief Investment Officer at Zaye Capital Markets, stated that the Fed’s synchronized move in line with market expectations has created a sense of confidence among traders. He compared the Fed’s actions to a perfectly orchestrated melody guiding them through the current economic crescendo.
The increase in gold prices and the anticipation of potential rate hikes highlight the economic uncertainties and the significance of gold as a safe-haven asset for investors during volatile times. As market conditions continue to evolve, gold prices may remain subject to fluctuations based on global economic developments and central bank policies.
