The gold rally persisted on Friday, with prices reaching an all-time high of Dh323.25 per gram as markets opened. Dubai Jewellery Group data revealed that the 24K variant of the precious metal increased by Dh1 per gram in the morning, settling at Dh323.25 per gram. Simultaneously, 22K, 21K, and 18K gold were trading at Dh299.5, Dh289.75, and Dh248.5 per gram, respectively.
On a global scale, spot gold was exchanging hands at $2,662.59 per ounce, reflecting a slight decline of 0.38 percent. Oliver Stevens, the product development and market expansion manager at Flow Community, attributed the sustained gold momentum to market anticipations of additional interest rate cuts this year. This expectation is notably influenced by the recent Federal Reserve meeting and the dovish remarks from Fed members this week. Investors are currently factoring in a 60 percent likelihood of an additional 50 basis points reduction in November.
“Markets are keenly awaiting upcoming US macroeconomic data releases, such as the PCE report, final Q2 GDP figures, weekly initial jobless claims, and durable goods orders. Speeches from Federal Open Market Committee (FOMC) members may also draw significant attention. These elements are expected to impact gold price dynamics and could introduce volatility in the near term. Nevertheless, the medium-term perspective for gold remains optimistic, given the broader easing cycle embraced by numerous central banks,” Stevens noted.
“Furthermore, ongoing worries about China’s economic rebound, despite recent stimulus efforts, have amplified concerns about a possible global economic downturn. This uncertainty is driving more investors to opt for safe-haven assets like gold. Additionally, geopolitical tensions—particularly the escalating conflicts in the Middle East—are bolstering gold’s attractiveness,” Stevens added.
