Gold prices in the UAE experienced a slight decline of Dh1 per gram on the initial trading day of the week, following a record-breaking surge over the weekend that exceeded Dh300 per gram.
On Monday morning, the 24K gold variant was trading at Dh302.75 per gram, marking a Dh1 decrease from the previous week's closing price. The metal reached an unprecedented high in the country on Saturday, with prices soaring to Dh303.75 per gram. Meanwhile, the 22K, 21K, and 18K variants were trading at Dh280.25, Dh271.5, and Dh232.75 per gram, respectively.
Internationally, spot gold was trading at $2,500.99 per ounce, a 0.2 percent decrease at 9.10am UAE time. The surge in gold prices has primarily been fueled by anticipations of a US Federal Reserve interest rate cut in September and heightened geopolitical tensions in the Middle East.
Ray Jia, the research head for China at the World Gold Council, noted that the gold price has been bolstered by escalating expectations of a rate cut by the US Fed in September, which has weakened US Treasury yields and the dollar, along with increasing demand for safe-haven assets on multiple fronts.
Emirates NBD Research reported that gold surpassed the $2,500 per ounce mark for the first time on Friday, although it has since dipped below that threshold in morning trading. Nonetheless, prices remain up by approximately 21 percent year-to-date.
