Gold prices continued to rally in Dubai in early trade on Tuesday, rising to a new record high.
The Dubai Jewellery Group data showed the 24K variant of the yellow metal was trading at Dh319.50 at the opening of the markets on Tuesday, rising Dh0.50 per gram.
Among the other variants, the 22K, 21K and 18K were trading higher at Dh295.75, Dh286.25 and Dh245.25 per gram, respectively,
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Globally, gold was trading slightly higher at $2,626.43 per ounce.
The yellow metal has been rallying due to expectations around further interest rate cuts by the US Federal Reserve as well as the geopolitical tension in the Middle East.
Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said the yellow gold was catapulted to a fresh all-time high on the back of soft US yields and rising demand for the safety of gold due to the rising geopolitical worries in the Middle East.
“The RSI (Relative Strength Index) indicator flashes the overbought conditions, suggesting that gold has been bought too rapidly in a too short period of time and that a downside correction would be healthy at the current levels. Yet, confusion regarding whether the stock markets deserve to advance to fresh records while the Fed is rushing toward exiting its tightening policy and the tense geopolitical setup could help gold bulls overlook the overbought conditions for a little while,” he said.