Gold prices in the UAE continued their upward trend on Friday, driven by geopolitical tensions in the Middle East and expectations of potential rate cuts by the US Federal Reserve, Khaleej Times reported.
In the UAE, the price of 24K gold increased by half a dirham to Dh297.5 per gram on Friday morning. Meanwhile, 22K, 21K, and 18K gold were priced at Dh275.5, Dh266.5, and Dh228.5 per gram, respectively.
On the global market, spot gold was trading at $2,463.45 per ounce, reflecting a 0.7 percent rise.
Vijay Valecha, CIO of Century Financial, mentioned to Khaleej Times that gold prices could reach a range of $2,700 to $3,000 per ounce, equivalent to Dh330-Dh365 per gram in the upcoming months.
Chris Weston, head of research at Pepperstone, highlighted that market conditions favor gold, particularly in anticipation of the US nonfarm payrolls report. He noted that weaker US payroll figures and a potential increase in the unemployment rate could prompt further rate cuts, pushing gold prices even higher, potentially surpassing $2,500 per ounce.
Weston also emphasized that the geopolitical situation in the Middle East contributes to gold’s attractiveness as a hedge against market uncertainties, potentially driving prices up if tensions escalate over the weekend.
Samer Hasn, a market analyst at XS.com, attributed gold’s rise to a significant contraction in US manufacturing activity and an unexpected increase in initial jobless claims, reinforcing the likelihood of multiple rate cuts this year. He added that the escalating geopolitical tensions and fears of a wider regional conflict in the Middle East are sustaining gold’s upward momentum.