Gold prices in Dubai have reached a new record high, with 22k gold now being sold at Dh408.
Gold prices have been on a remarkable upward trend, reaching new heights globally. On Tuesday, gold prices in Dubai surged to a record high of Dh408 per gram for 22-karat gold, and 24-karat gold also jumped to Dh440.5 per gram.
This surge in gold prices followed weak U.S. jobs data, which increased expectations that the U.S. Federal Reserve will cut interest rates soon. The expectations of rate cuts by the Fed have helped push gold prices higher around the world. In fact, global gold prices reached an all-time high of over $3,659 per ounce.
Central bank buying, interest rate cut expectations, and global tensions have contributed to the rise in gold prices. The appeal of gold as a safe investment could lead to more increases in gold prices, with some analysts predicting that gold could climb even further. Experts predict gold could climb even higher, with some forecasts suggesting it could reach $5,000 an ounce in the future.
The potential for gold to reach $5,000 an ounce is based on increased pressure on the U.S. central bank or investors moving money out of U.S. bonds and into gold. Lower interest rates usually make gold more attractive, since gold doesn't earn interest. Many traders now expect the Fed to cut rates twice this year.
Political uncertainty in the U.S. and concerns over global trade have made gold a popular "safe haven" for investors. In 2021, analysts expected gold prices in the United States to remain volatile but continue to trade at a high level, potentially reaching around 2,000 euros per ounce (about $2,400) during the year.
For the latest UAE gold prices, as well as prices in other Gulf countries, you can find up-to-date information here. Higher gold prices could lead to increased costs for UAE gold shoppers, so it's worth keeping an eye on these trends.
