KT Photo: Shihab
Gold prices surged by over Dh2 per gram during the early trading hours in Dubai on Wednesday, mirroring the global market's upward trajectory. According to the Dubai Jewellery Group, the 24K variant of gold opened at Dh323 per gram, marking a Dh2.25 increase from the previous day's close of Dh320.75 per gram. Other variants, including 22K, 21K, and 18K, also saw rises, trading at Dh299, Dh289.5, and Dh248 per gram, respectively.
Globally, spot gold was trading at $2,666.77 per ounce, reflecting a 0.23% increase at 9.10am UAE time. Tito Iakopa, the commercial director at FlowCommunity, noted that gold futures were hovering near historic highs, driven by market anticipation of new factors that could influence the asset's direction.
"Key economic data releases, such as retail sales reports and unemployment claims, along with speeches from various US Federal Reserve officials, are expected to provide crucial insights into future monetary policy decisions. Any substantial changes in the Fed's rate adjustment strategy could significantly impact market sentiment and gold prices," Iakopa explained.
He further added, "The recent resurgence of the dollar and Treasury yields might limit gold's potential for further gains. However, the ongoing easing cycles by major central banks continue to foster a positive outlook for gold. Additionally, the metal benefits from heightened demand as a safe haven due to geopolitical tensions. Recent developments between China and Taiwan, coupled with ongoing risks in the Middle East, could intensify risk aversion and steer investors towards safe haven assets."
