Gold Prices Surge in UAE, Setting New Records Amid Global Rally

Gold prices in the UAE experienced a notable surge this week, with an increase of eight dirhams per gram, as global prices soared above $2,200, marking an unprecedented high.

Throughout March, the precious metal prices saw gains of approximately Dh17 per gram, further contributing to the upward trajectory.

Anticipated Continuation of Rally:

Analysts foresee the rally persisting into April, propelled by heightened demand for gold amid global uncertainties and increased purchases by central banks.

According to data from the Dubai Jewellery Group, the 24K variant of gold concluded the week at Dh270.5 per gram, a significant rise from its starting value of Dh262.5 per gram. Similarly, other variants, such as 22K, 21K, and 18K, also ended the week on a higher note.

Global Gold Market Performance:

Globally, spot gold closed the week at approximately $2,232.75 per gram, compared to $2,172 at the beginning. This was bolstered by expectations of major central banks’ interest rate cuts and increased central bank purchases.

The wave in gold prices can be attributed to expectations of interest rate cuts by the US Federal Reserve and other central banks, alongside escalating geopolitical tensions, which have heightened demand for gold as a safe-haven asset.

Expert Analysis by Joseph Dahrieh:

Joseph Dahrieh, managing principal at Tickmill, highlighted that gold reached an all-time high as traders anticipated interest rate cuts by major central banks and that geopolitical tensions drove up demand for bullion. He predicts continued support for gold prices in the long term.