Gold prices gained further at the opening of the markets on Thursday after jumping Dh1 per gram on Wednesday.
The Dubai Jewellery Group data showed 24K trading at Dh247.5 per gram at the opening of the markets, up from Dh247.25 at the close of the markets yesterday. Among the other variants of the yellow metal, 22K, 21K and 18K were selling at Dh229.25, Dh222.0 and Dh190.25 per gram, respectively.
Prices jumped one dirham per gram on Thursday ahead of the US Federal Reserve announcement about interest rates.
Globally, spot gold rose 0.4 per cent to $2,045.65 per ounce by 9.22am UAE time on Thursday. On Wednesday, bullion touched a more than two-week high of $2,055.89 before paring gains to end the session 0.1 per cent higher.
Gold prices rose on Thursday as investors held on to hopes that the Federal Reserve would cut interest rates by a significant amount this year, even after the US central bank pushed back against the idea of a cut in March.
Vijay Valecha, chief investment officer, Century Financial, said gold surged even though traders have moderated their bets on the Federal Reserve’s rate cuts for 2024, with the likelihood of a March rate cut now reduced.
“This shift in expectations follows strong US economic data and signals from central bankers, suggesting a less dovish stance than previously anticipated. As of the time of writing the probability of a rate cut in March 2024 is at 44.7 per cent, while the probability of the rates remaining constant at the January 2024 session is at 98 per cent. Looking ahead into the day, the FOMC statement is expected to be the focus of the day,” he said.