Gold prices in Dubai surpassed the Dh300 mark again on Friday evening to a record high, driven by a rally in global prices hitting $2,500 per ounce amidst growing expectations of interest rate cuts by the US Federal Reserve in September and tension in the Middle East region.
The 24K variant of the yellow metal was trading at Dh302.0 per gram on Friday evening. Among the other variants, 22K, 21K and 18K were selling at Dh270.75, Dh270.75 and Dh232.0 per gram, respectively.
The yellow metal earlier crossed Dh300 per gram in the market on July 17, 2024, reaching a high of Dh300.5 per gram.
Analysts earlier told Khaleej Times that the yellow metal could reach Dh365 per gram in the coming months due to geopolitical tension in the region and interest rate cut expectations by the Fed.
Globally, spot gold was trading at $2,508.18 per ounce, up 2.06 per cent.
Alex Kuptsikevich, senior market analyst at the FxPro, said the yellow metal has been rising steadily since the end of last week and is attempting to consolidate above $2,470 per troy ounce on the spot market for the third time in 30 days.
“Gold has moved in tandem with equities this month, but it is worth noting that it fell less aggressively during the panic and outpaced the rally. So, gold is riding on a global recovery in demand for risk assets, but it has the fundamental support in its arsenal that has pushed the price to repeated all-time highs since March,” he said.
Kuptsikevich added: “A trend line can be drawn across the local lows of May from which gold rallied in the early days of August. Combined with local resistance at $2,475, this forms a bullish triangle with a high probability of a breakout.”
As far as more distant growth targets are concerned, Kuptsikevich sees precious metal at $2,800-$2,900 level.