Gold prices experienced a sustained rally in the UAE, reaching a historic high on Friday. The cost of 24K gold increased by a significant Dh5.75 per gram on Friday, ending the week at Dh281.5 per gram – the most expensive it has ever been. Over the first week of April 2024, the price surged by Dh7.75 per gram.
Other gold variants also set new records, with 22K closing at Dh260.75, 21K at Dh252.25, and 18K at Dh216.25.
International spot gold prices followed suit, closing at $2,329.93 an ounce on Friday, reflecting a 1.79% increase.
While analysts suggest some potential short-term profit-taking may lead to a price adjustment, the long-term outlook for gold remains strong.
“Gold price could be exposed to the downside over the short term as traders could view the market as overbought,” cautioned George Pavel, general manager at Capex.com Middle East in a Khaleej Times report.
However, Vijay Valecha, chief investment officer at Century Financial, believes that the current prices still offer a good entry point for long-term investors.