Gold prices in Dubai have witnessed a notable increase, climbing over one dirham per gram to hit Dh250 per gram on Tuesday morning. This surge in prices is highlighted by the Dubai Jewellery Group data, which showed the 24K gold variant opening at Dh250 per gram, a rise from the previous day’s Dh248.75.
The uptrend was not limited to the 24K variant alone. Other forms of gold, including 22K, 21K, and 18K, also opened at higher prices of Dh231.5, Dh224.0, and Dh192.0 per gram, respectively.
This upward trajectory in gold prices is mirrored in the global market, with spot gold increasing by 0.51% to $2,063.65 per ounce at 9.15 am UAE time. This rise coincides with a decrease in the US dollar value and bond yields, fueled by anticipation of interest rate cuts by the Federal Reserve as early as March next year. Notably, gold reached a high of $2,070.39 in the previous session, marking a more than two-week peak.
The reopening of global markets on Tuesday after the Christmas holiday break has also influenced these trends.
Market analysts project that gold prices will remain elevated into 2024, driven by anticipated interest rate cuts and ongoing global geopolitical issues. Nick Cawley, a senior strategist at dailyFX, suggests that a combination of a weaker dollar and lower Treasury yields is increasing gold’s appeal, with a potential retest of the December 4, 2023, high of $2,147 an ounce expected in early 2024.
Adding to the analysis, Yeap Jun Rong, a strategist at IG market, observes that gold resumed its upward trajectory in the new week, bolstered by recent US economic data that aligns with dovish rate expectations set by the market. He notes that as long as economic data continues this trend, gold prices could break the upper consolidation range, targeting the $2,080 level.