Prime Highlights:
- 22-karat gold in Dubai hits Dh408 per gram, while 24-karat gold reaches Dh440.5 per gram.
- Global gold prices reached a record high of over $3,659 per ounce following weak U.S. jobs data.
Key Facts:
- Gold prices have risen nearly 40% this year, driven by central bank buying, rate cut hopes, and global uncertainties.
- Experts predict gold could climb further, potentially reaching $5,000 per ounce in the future.
Key Background:
Gold prices in Dubai climbed to new highs on Tuesday. 22-karat gold stayed above Dh400 per gram for the third day in a row, now priced at Dh408 per gram. 24-karat gold also rose by Dh3, reaching Dh440.5 per gram.
The rise comes after global gold prices hit a record high of over $3,659 per ounce. Experts say this is linked to weak U.S. jobs data, which increases expectations that the U.S. Federal Reserve may lower interest rates soon. Lower rates usually make gold more attractive since it doesn’t earn interest. Traders now expect the Fed to cut rates twice this year, possibly starting with a small reduction next week.
Gold prices have already increased nearly 40% this year. Central bank buying, hopes for rate cuts, and global uncertainties have helped push prices higher. Political tensions in the U.S. and worries about global trade have also made gold a “haven” for investors.
Analysts believe gold could go even higher if pressure on the U.S. central bank grows or if investors move money from U.S. bonds to gold. There are predictions that gold will reach 5000 dollars per ounce in the future, which makes it a good long-term investment.
This translates to increased costs of gold jewelry and coins to shoppers in the UAE, and more is expected to be more expensive. Customers have increased their interest in jewelers since they are trying to purchase before the prices escalate further.
Gold remains popular among investors all over the world, and the market will remain robust. This spurt, be it in terms of investment or personal consumption, is a significant point for the UAE and the world markets.
