Globally, spot gold was trading at $2,662.59 per ounce, down by 0.38 per cent
Gold rally continued on Friday, as prices surged to a record high of Dh323.25 per gram at the opening of the markets.
According to Dubai Jewellery Group data, the 24K variant of the yellow metal rose Dh1 per gram on Friday morning to Dh323.25 per gram. Meanwhile, 22K, 21K, and 18K were selling higher at Dh299.5, Dh289.75, and Dh248.5 per gram, respectively.
Globally, spot gold was trading at $2,662.59 per ounce, down by 0.38 per cent.
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Oliver Stevens, product development and market expansion manager at Flow Community, said gold remained driven by market expectations of further interest rate cuts this year. This is particularly because of last week's Federal Reserve meeting and dovish comments from Fed members this week. Investors are now pricing in a 60 per cent probability of an additional 50 basis points reduction in November.
“Markets are looking ahead to upcoming US macroeconomic data releases, including the PCE report, final Q2 GDP figures, weekly initial jobless claims, and durable goods orders. Speeches from Federal Open Market Committee (FOMC) members could also come under scrutiny. These factors are likely to influence gold price movements and may create volatility in the short term. However, the medium-term outlook for gold remains favourable, given the general easing cycle adopted by several central banks,” said Stevens.
“Moreover, persistent concerns about China’s economic recovery, despite recent stimulus measures, have heightened fears of a potential global economic slowdown. This uncertainty is prompting more investors to seek safe-haven assets like gold. Additionally, geopolitical risks—especially escalating tensions in the Middle East— are enhancing gold’s appeal,” said Stevens.
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Waheed Abbas is Assistant Editor, covering real estate, aviation and other business stories that directly affect the lives of UAE consumers. He frequently reports human interest stories, too.
waheedabbas@khaleejtimes.com