Gold prices in Dubai exceeded the Dh300 threshold once more on Friday evening, reaching a new peak. This surge was fueled by a global price increase to $2,500 per ounce, influenced by anticipations of interest rate reductions by the US Federal Reserve in September and heightened tensions in the Middle East. The 24K gold was trading at Dh302.0 per gram on Friday evening. Other variants, including 22K, 21K, and 18K, were priced at Dh270.75, Dh270.75, and Dh232.0 per gram, respectively.
This milestone comes after the metal previously surpassed Dh300 per gram on July 17, 2024, peaking at Dh300.5 per gram. Analysts previously forecasted to Khaleej Times that gold could hit Dh365 per gram in the near future due to regional geopolitical tensions and expected rate cuts by the Fed. Globally, spot gold was trading at $2,508.18 per ounce, marking a 2.06% increase.
Alex Kuptsikevich, a senior market analyst at FxPro, noted that gold has been steadily climbing since the end of last week, attempting to stabilize above $2,470 per troy ounce in the spot market for the third time in 30 days. He highlighted that gold has tracked the equity markets this month but has shown less aggressive declines during market panics and outperformed during rallies. Thus, gold is benefiting from a global recovery in demand for risky assets, supported by fundamental factors that have consistently pushed its price to new highs since March.
Kuptsikevich further explained that a trend line can be observed from the local lows in May, from which gold surged in early August. This, combined with local resistance at $2,475, forms a bullish triangle indicating a high likelihood of a breakout. Looking further ahead, Kuptsikevich anticipates the precious metal to reach levels between $2,800 and $2,900.
