Gold prices saw a massive increase of over Dh3 per gram in Dubai on Wednesday morning, reaching Dh299 per gram in early trade.
According to Dubai Jewellery Group, the 24K variant of the yellow metal jumped Dh3.25 per gram to Dh299.9 at 9 am on Wednesday. Among the other variants, 22K, 21K and 18K were trading at Dh276.75, Dh268.0 and Dh299.75 per gram.
Gold prices have risen by Dh5 per gram in Dubai in the past 24 hours.
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Globally, spot gold was trading at $2,466.35 per ounce, reaching a record high as investors flocked to the safe-haven metal after comments from the US Federal Reserve officials cemented expectations of a US interest rate cut in September.
Analysts are expecting the next target for the yellow metal to reach $2,600 per ounce.
“It’s been a momentous day for the gold market and client flows have been huge – where we’ve seen momentum-focused traders adding to long positions on the break of the prior all-time high (ATH) of $2,450, while others see the move as having gone too far too soon and are selling into the rally,” said Chris Weston, head of research at Pepperstone.
“Technically, gold has held a range of $2,450 to $2,285 since mid-April, but on the day, we see price breaking out topside emphatically, and where a measured move of the range suggests a target closer to $2,600,” he said.
He said the market has unwavering confidence that the Fed is about to embark on an easing cycle from September.