Gold prices rose more than Dh1 per gram at the opening of the markets in Dubai on Thursday.
In the UAE, 24K was selling at Dh298.5 per gram at 9am on Thursday compared to Dh297.25 at the close of the markets on Wednesday.
The precious metal prices touched a record high on Wednesday evening, reaching Dh300.50 per gram before they closed lower at Dh297.25 per gram yesterday.
[Editor’s Note: For real-time gold rates, click on the widget below or visit KT’s dedicated Trading News page here.]
Among the other variants of the yellow metal, 22K, 21K and 18K were trading at Dh276.25, Dh267.50 and Dh229.25 per gram, respectively.
Globally, spot gold was trading at $2,467.04 per ounce, up 0.23 per cent. Prices touched $2,482 per ounce in the previous session.
The rally in gold prices has been mainly driven by the expectations of the US Federal Reserve cutting interest rates in September after the latest inflation data.
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
“In July, as rate cut expectations have increased gold prices have rallied by $140/troy oz or about 6 per cent. But most of the year’s gains in gold came during Q1 and the early parts of Q2 as rate cut expectations were actually declining. Inflation estimates in Q1 for the US economy were higher than expected and investors adjusted their rate cut expectations lower. During that period gold prices rose by nearly $330/troy oz or roughly 16 per cent,” said Edward Bell, head of market economics at Emirates NBD Research.
Over the medium- and longer-term, he added that the influence of factors like consumer sentiment, the performance of equity markets, and the US dollar exert a more powerful effect on gold prices.
“As gold is the near ultimate sentiment investment (it pays no dividend or yield and has limited commercial application) it appears to benefit from periods of deteriorating consumer and investor optimism. Gold has trended higher when the University of Michigan’s consumer sentiment survey has deteriorated: the global financial crisis and pandemic appear to highlight this relationship,” Bell added.