Gold prices surpassed Dh250 per gram in the UAE on Wednesday morning as the yellow metal continued to trade above $2,060 an ounce due to a weaker dollar and expectations of interest rate cuts by the US Federal Reserve.
The Dubai Jewellery Group data showed 24K trading at Dh250.25 per gram at the opening of the markets on Wednesday as compared to Dh249.5 per gram when markets closed on Tuesday. Among the other variants, 22K was trading higher at Dh231.75 per gram, 21K at Dh224.25, and 18K at Dh192.25.
Globally, spot gold was steady at $2,065.9 per ounce at 9.28am, UAE time.
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Most analysts expect the US central bank to cut interest rates between 50 and 100 basis points next year as inflation moves closer to its two per cent target.
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Diego Colman, contributing strategist at dailyFX, said support appears at $2,050, followed by $2,010.
“Bulls must defend this floor tooth and nail – failure to do so could rekindle downward momentum, laying the groundwork for a drop toward $1,990. On further weakness, the focus turns to $1,975,” said Colman.
But if buyers, he added, manage to push prices above $2,070-75, then upward impetus could gather pace, which could push yellow metal to start consolidating above $2,100. “Continued strength could pave the way for a retest of the all-time high at $2,150,” he added.
Analysts expect precious metal prices are expected to stay above $2,000 an ounce next year due to economic, political, and geopolitical risks around the world.
In 2023, the gold market experienced a turbulent journey, reaching unprecedented heights above $2,100 before experiencing a dip and stabilising around the $2,050 level.