Gold prices in Dubai fell by Dh2 per gram on Wednesday morning following a record high on Tuesday evening. As of 9 a.m. UAE time, the 24K gold variant was priced at Dh304.5 per gram, down from Dh306.5 per gram, which marked an all-time high the previous night. Other gold variants, including 22K, 21K, and 18K, were trading at Dh282.0, Dh273.0, and Dh234.0 per gram, respectively.
Globally, spot gold was trading at $2,516.96 per ounce, reflecting a slight increase of 0.15 percent. The recent surge in gold prices was driven by a weaker dollar and expectations of interest rate cuts by the US Federal Reserve.
Tito Iakopa, commercial director at FlowCommunity, attributed the recent peak in gold prices to investor speculation on a potential rate cut by the Federal Reserve. He noted in a Khaleej Times report that the upcoming speech by Fed Chair Jerome Powell and the release of the latest FOMC minutes are key events that investors are closely monitoring. Iakopa also mentioned that geopolitical uncertainties and the approaching US elections could keep demand for gold strong as a safe-haven asset.