Gold prices in the UAE continued their ascent, with the 24K variant of the yellow metal opening at Dh283.5 per gram on Thursday, up from Dh281.75 the previous night—an increase of Dh1.75 per gram. Other variants also saw gains, with 22K, 21K, and 18K opening higher at Dh262.5, Dh254.0, and Dh217.75 per gram, respectively.
Globally, gold reached $2,340.74 per Ounce, marking a 0.48% increase and hitting a one-week high, fueled by investor optimism over potential US Federal Reserve cuts.
Ole Hansen, Saxo Bank’s head of commodities strategy, noted that China, a vital driver of the gold rally since 2022, remains actively purchasing gold. He highlighted a temporary purchase pause due to high prices, exacerbated by scrutiny over Chinese private acquisitions. Despite consolidation, Hansen maintains a bullish long-term outlook, citing sustained demand from Chinese central banks, retail investors, and managed money traders who entered early and avoided forced sell-offs during corrections.
Saxo Bank retains a positive outlook for investment metals, citing geopolitical risks, retail solid demand in China amid economic uncertainties, ongoing central bank purchases, and inflation resilience as supporting factors.
Gold prices in the UAE continued their ascent, with the 24K variant of the yellow metal opening at Dh283.5 per gram on Thursday, up from Dh281.75 the previous night—an increase of Dh1.75 per gram. Other variants also saw gains, with 22K, 21K, and 18K opening higher at Dh262.5, Dh254.0, and Dh217.75 per gram, respectively.
Globally, gold reached $2,340.74 per Ounce, mounting a 0.48% increase and hitting a one-week high, fueled by investor optimism over potential US Federal Reserve cuts.
Ole Hansen, Saxo Bank’s head of commodities strategy, noted that China, a vital driver of the gold rally since 2022, remains actively purchasing gold. He highlighted a temporary purchase pause due to high prices, exacerbated by scrutiny over Chinese private acquisitions. Despite consolidation, Hansen maintains a bullish long-term outlook, citing sustained demand from Chinese central banks, retail investors, and managed money traders who entered early and avoided forced sell-offs during corrections.
Saxo Bank retains a positive outlook for investment metals, citing geopolitical risks, retail solid demand in China amid economic uncertainties, ongoing central bank purchases, and inflation resilience as supporting factors.
Gold Prices in the UAE
- Gold prices in the UAE continued their upward trend on Thursday:
- 24K Variant: Dh283.5 per gram, up Dh1.75 from Dh281.75 the previous night.
Other Variants:
- 22K: Dh262.5 per gram
- 21K: Dh254.0 per gram
- 18K: Dh217.75 per gram
Global Market Trends
- Global Gold Price: $2,340.74 perOuncee, a 0.48% incense, reaching a one-week high.
- Market Drivers: Investor optimism over potential US Federal Reserve cuts.
- Expert Insights from Ole Hansen, Saxo Bank
- China’s Influence: Continues to drive the gold rally since 2022.
- Current Market Pause: Due to high prices and scrutiny over Chinese private acquisitions.
- Long-Term Outlook: Bullish, supported by sustained demand from Chinese central banks, retail investors, and managed money traders.
Saxo Bank’s Outlook
- Positive Outlook: Geopolitical risks, retail solid demand in China, ongoing central bank purchases, and inflation resilience support investment in metals.
Global Market: Gold Reaches $2,340.74 per Ounce
Gold prices have surged to $2,340.74 per Ounce, reflecting a 0.48% increase and marking a one-week high. This upward trajectory was fueled by heightened investor optimism, primarily driven by the US Federal Reserve’s expectations of potential interest rate cuts. Such cuts bolster gold’s appeal as a hedge against inflation and economic uncertainty, prompting increased investment in the precious metal.
Expert Analysis: Ole Hansen on China’s Role
Ole Hansen, the head of commodities strategy at Saxo Bank, emphasized China’s pivotal role in the recent gold market dynamics. China has been a significant driver of the gold rally since 2022, with its continued robust demand influencing global prices. Hansen noted a temporary pause in Chinese buying activity, primarily attributed to current record-high prices and heightened scrutiny over private acquisitions of gold in the country. Despite this pause, Hansen maintains a bullish long-term outlook on gold, citing sustained interest from Chinese central banks, retail investors, and managed money traders who strategically entered the market early, thereby avoiding forced sell-offs during correction periods.
Market Trends: Investor Optimism Drives Gold to One-Week High
Investor sentiment has been buoyed by the prospect of US Federal Reserve actions to cut interest rates, which traditionally supports gold prices. This optimism has contributed significantly to gold’s recent surge to a one-week high of $2,340.74 per Ounce. Investors perceive gold as an Ounce asset amidst global economic uncertainties and inflation concerns, further underpinning its attractiveness in the current market environment.
Frequently Asked Question
What caused the recent jump in gold prices in the UAE?
Gold prices in the UAE increased by nearly Dh2 per gram primarily due to strong investor demand and global market trends favoring safe-haven assets.
What are the current prices of different gold variants in the UAE?
As of early trade, the prices in the UAE are:
- 24K variant: Dh283.5 per gram
- 22K variant: Dh262.5 per gram
- 21K variant: Dh254.0 per gram
- 18K variant: Dh217.75 per gram
How does this increase compare to previous prices?
For example, the 24K variant rose from Dh281.75 to Dh283.5 per gram, marking an increase of Dh1.75 per gram.
What factors contributed to gold reaching a one-week high globally?
Globally, gold reached $2,340.74 per Ounce, driven by investor optimism amid enunciations of potential US Federal Reserve interest rate cuts, which typically enhance gold’s appeal as a hedge against inflation.
What role does China play in the current gold market scenario?
China has been a significant driver of the gold rally since 2022, with sustained demand from Chinese central banks, retail investors, and managed money traders influencing global prices.
Why did Chinese buying activity pause recently?
Chinese buying activity paused temporarily due to high gold prices and increased scrutiny of private gold acquisitions within China.
How does investor optimism impact gold prices?
Investor optimism, especially regarding potential US Federal Reserve actions, has bolstered gold prices, pushing them to a one-week high.
What are the reasons behind the current attractiveness of gold as an investment?
Gold is viewed as a safe-haven asset amidst global economic uncertainties and concerns about inflation, making it a preferred investment choice.
What is the outlook for gold prices shortly?
Despite temporary pauses and corrections, experts maintain a positive long-term outlook for gold, supported by geopolitical uncertainties, strong demand from China, and ongoing central bank purchases globally.
Conclusion
the recent surge in gold prices in the UAE, with an increase of nearly Dh2 per gram in early trade, underscores strong investor demand and favorable global market conditions. Prices for gold variants such as 24K, 22K, 21K, and 18K have risen correspondingly, reflecting ongoing market dynamics. Globally, gold reached $2,340.74 per Ounce, marking a one-week high driven by Ouncetor optimism amidst expectations of US Federal Reserve interest rate cuts. China plays a crucial role in the gold market despite a temporary purchase pause due to high prices and regulatory scrutiny.
