Gold prices reversed in Dubai on Thursday afternoon, jumping to record high after the US Federal Reserve slashed interest rates by 50 basis points on Wednesday.
Following the Dh3 drop over the past three days, the 24K variant of the yellow metal rose to a record high of Dh313.75 per gram on Thursday afternoon, surpassing its previous all-time high of Dh313.50 per gram, which was recorded on Monday.
Among the other variants of the precious metal, 22K was trading at Dh290.50, 21K at Dh281.25 and 18K at Dh241 per gram.
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Gold prices opened lower for the third consecutive day when markets opened in Dubai on Monday.
Globally, gold climbed over 1 per cent on Thursday after the Fed rate cut, powering bullion to all-time highs, coming just a few cents shy of $2,600 in the previous session.
At 3pm UAE, gold was trading at $2,588.04 an ounce, up 1.13 per cent.
Bas Kooijman, CEO and asset manager of DHF Capital, said the Federal Reserve’s interest rate decision came as a boost to the gold market and drove prices to a new high.
“The 50-basis-point rate cut could help extend the current uptrend in gold prices, which could continue to see new records, thanks to other additional supporting factors. The decision acts as a start of an interest rate cut cycle that markets have long been waiting for and could fuel appetite for assets like gold and others. The size of the cut also opens the way for more aggressive actions in the coming months,” said Kooijman.
“In this regard, the Federal Reserve’s dot plot shows a steeper decline in interest rates than previously forecast by the central bank. This trajectory could further cement gains in gold prices,” he added.