Gold prices in Dubai experienced a significant surge on Wednesday morning, climbing by more than Dh3 per gram to reach Dh299 per gram at the start of trading. The Dubai Jewellery Group reported that the 24K gold variant increased by Dh3.25 per gram, hitting Dh299.9 at 9 am. Meanwhile, the prices for 22K, 21K, and 18K gold stood at Dh276.75, Dh268.0, and Dh299.75 per gram, respectively. Over the last 24 hours, gold prices have increased by Dh5 per gram in Dubai.
On a global scale, spot gold was trading at $2,466.35 per ounce, marking a new record high. This surge was driven by investors turning to gold as a safe-haven asset following comments from US Federal Reserve officials that reinforced expectations of a US interest rate cut in September. Analysts predict that the next target for gold could be $2,600 per ounce.
Chris Weston, head of research at Pepperstone, commented on the significant activity in the gold market, noting that traders have been actively adding to long positions following the break of the previous all-time high of $2,450. However, some traders view the current movement as overly aggressive and are opting to sell into the rally. Technically, gold has maintained a range between $2,450 and $2,285 since mid-April, but today's breakout suggests a target closer to $2,600. Weston also highlighted the market's strong belief that the Fed will initiate an easing cycle starting from September.
