Gold prices jumped to a record high in the UAE on Thursday morning, rising by Dh5 per gram at the opening of the markets.
The Dubai Jewellery Group data showed a 24K variant of the precious metal trading at Dh266.75 per gram on Thursday morning as compared to Dh261.75 at the close of the markets on Wednesday, up Dh5 per gram.
Among the other variants of the yellow metal, 22K opened higher at Dh247 per gram, 21K at Dh239 and 18K at Dh205.
Globally, spot gold was trading at $2,202.71 per ounce at 9.30am, UAE time. This comes as it hit an all-time high of $2,222.39 per ounce earlier in the day when the US dollar dropped after the Federal Reserve maintained its projections of three rate cuts for this year.
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Spot gold made a big jump of over $50 an ounce in the past 24 hours as it was trading at just above $2,150 per ounce on Wednesday morning.
Late on Wednesday, the Fed held interest rates steady but expected to reduce them by three-quarters of a percentage point this year.
Similarly, the Central Bank of the UAE (CBUAE) also decided to maintain the Base Rate applicable to the Overnight Deposit Facility (ODF) without change at 5.4 per cent. This decision was taken following the US Federal Reserve’s announcement on March 20 to keep the Interest on Reserve Balances (IORB) unchanged.
The CBUAE has also decided to maintain the interest rate applicable to borrowing short-term liquidity from the CBUAE at 50 basis points above the Base Rate for all standing credit facilities.