Gold prices continued their upward trend on Tuesday morning as the precious metal hit a six-month high.
According to the Dubai Jewellery Group data, the 24K opened half a dirham higher at Dh244.0 per gram on Tuesday while 22K, 21K and 18K were trading at Dh226.0, Dh218.75 and Dh187.5 per gram, respectively.
Globally, spot gold rose to $2,015.65 per ounce in the morning trade, hitting a six-month peak on the back of expectations that an end to the US Federal Reserve’s interest rate hike cycle would keep the dollar and yields under check.
Charu Chanana and Redmond Wong, market strategists at Saxo Bank, said gold prices managed to clear the October peak of the $2,010 barrier as it climbed to a six-month high amid lower yields and a weaker dollar. “Our technical analyst sees the next barrier at $2,039 but there is room up to the previous peak of around $2,070-78,” said Saxo Bank analysts.
Wael Makarem, financial markets strategists lead – Mena at Exness, said gold prices continued their ascent, extending two consecutive weeks of gains to reach their previous peak for October.
“Gold benefited from a market consensus that the Federal Reserve has largely concluded its rate hikes, with increasing expectations of a rate cut in the second quarter of next year. Additionally, a weaker US dollar, sliding US yields and a slowing global economy are enhancing gold’s appeal as a safe haven asset. This week’s US economic data, particularly on GDP growth and inflation, could affect sentiment and, consequently, gold prices,” he said.