Gold prices in Dubai saw a significant surge during early trading on Tuesday, reaching an unprecedented high. According to data from the Dubai Jewellery Group, the 24K variant of the precious metal was trading at Dh319.50 at the market's opening, marking a Dh0.50 increase per gram. The other variants, including 22K, 21K, and 18K, also experienced upward trends, trading at Dh295.75, Dh286.25, and Dh245.25 per gram, respectively.
Globally, gold prices were slightly higher, standing at $2,626.43 per ounce. The recent rally in gold prices can be attributed to expectations of further interest rate cuts by the US Federal Reserve and the escalating geopolitical tensions in the Middle East. Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, noted that gold's surge to a new all-time high was driven by declining US yields and increased demand for gold as a safe haven amid rising Middle Eastern geopolitical concerns.
Ozkardeskaya added, “The RSI (Relative Strength Index) indicator is signaling overbought conditions, suggesting that gold has been bought too rapidly over a short period, and a downward correction would be beneficial at these levels. However, the uncertainty surrounding whether stock markets should continue to reach new records while the Fed is moving towards ending its tightening policy, combined with the tense geopolitical environment, could allow gold bulls to overlook the overbought conditions for a while.”
