Gold prices surged by nearly Dh2 per gram at the market opening on Thursday, driven by a global increase of over one percent in precious metals due to anticipated US interest rate cuts. According to the Dubai Jewellery Group, the 24K gold variant traded at Dh296 per gram on Thursday morning, up from Dh293.75 at Wednesday's market close. Other variants, including 22K, 21K, and 18K, started trading at Dh274.0, Dh265.25, and Dh227.25 per gram respectively. The price of gold has increased by approximately Dh6 per gram in the last 24 hours. Analysts predict that the rising trend will persist in the near term, potentially reaching Dh300 per gram, influenced by expected Fed rate cuts and Middle East geopolitical tensions, before any profit-taking occurs.
Globally, spot gold remained stable at $2,444.3 per ounce at 9:10 am UAE time. The metal gained more than one percent on Wednesday evening following hints from US Federal Reserve Chair Jerome Powell that a rate cut might be considered in September if US inflation aligns with forecasts. Emirates NBD Research noted that the Fed maintained its Fed funds rate at the FOMC meeting, with the upper limit staying at 5.50 percent. The research group anticipates the first rate cut in this cycle to occur at the September meeting, with a second cut expected in December, despite the FOMC's June economic projections indicating only one cut.
