Gold prices in Dubai experienced an increase during the early trading session on Thursday, with the yellow metal maintaining a price above $2,500 per ounce. Within the UAE, the 24K version of the precious metal was being traded at Dh303.0 per gram, marking a rise of Dh0.75 per gram as of 9am UAE time. The other variants, including 22K, 21K, and 18K, also saw higher opening prices at Dh280.5, Dh271.5, and Dh232.75 per gram respectively. On a global scale, spot gold was trading at $2,502.13 per ounce, showing a decrease of 0.43 percent at 9.05am UAE time.
Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, commented that the weakening of the dollar is enhancing gold's appeal. 'The precious metal has recently hit a new record, supported by increasing expectations of cuts by the US Federal Reserve and lower US yields. TD Securities suggests that the current positioning in gold aligns more with levels indicative of a recession. If a recession is not considered imminent, gold prices might be inflated,' he explained. Ozkardeskaya further noted that central banks in emerging markets have been purchasing gold to hedge against inflation and to reduce reliance on the dollar and the uncertain geopolitical and financial environment, which is driving investment towards the safety of gold. 'However, Chinese consumers are reportedly reducing their purchases due to high prices, the expectations of a dovish Fed seem overpriced, and the RSI index indicates that gold is approaching overbought territory, suggesting a correction could be beneficial at current levels,' he added.
