UAE announces an increase in gold prices amid the global surge
A global rally that saw prices rocket beyond $2,200 and reach an all-time high was the primary driver of this week's eight dirham increase in gold prices in the United Arab Emirates.
Precious metal prices increased significantly in March, rising by almost Dh17 per gram. This uptrend comes after that.
Analysts are optimistic about the outlook for gold prices, expecting the rally to continue into April. This bullish sentiment is primarily fueled by heightened demand for gold amid ongoing global uncertainties and increased purchases by central banks, which traditionally strengthen gold prices during times of economic instability.
The Dubai Jewellery Group said that some gold variations had significant increases during the course of the week. The 24K variety saw a weekly increase to Dh270.5 per gram at the end of the week from Dh262.5 at the start. Other variations, such as 22K, 21K, and 18K, also saw notable gains; by the end of the week, their respective prices were Dh250.5, Dh242.5, and Dh207.75 per gram.
Internationally, spot gold prices closed the week at approximately $2,232.75 per gram, compared to $2,172 per gram at the start of the week. This surge in prices was buoyed by expectations of interest rate cuts by the US Federal Reserve and other central banks, as well as heightened geopolitical tensions, which drove up demand for gold as a safe-haven asset.
Joseph Dahrieh, managing principal at Tickmill, attributed the record-high gold prices to traders' expectations of impending interest rate cuts by major central banks and escalating geopolitical tensions. He emphasized that gold's strong performance this week underscores its potential to continue gaining support over the long term, especially if interest rate cuts materialize and geopolitical tensions persist, thereby sustaining demand for the precious metal.
The surge in gold prices in the UAE and globally reflects heightened market volatility and uncertainty. With analysts predicting continued momentum in the coming weeks, investors and traders are closely monitoring developments in global economic and geopolitical landscapes to gauge the future trajectory of gold prices.
