Gold Prices Hit New Highs in UAE, Analysts Predict Volatility Ahead

Gold prices in the UAE continued their upward trajectory on Monday morning, reaching another record high as the precious metal’s rally persisted.

Increase in UAE Gold Prices:

The price of 24K gold surged by Dh3.25 per gram to reach Dh273.75 per gram, compared to last week’s close of Dh270.5 per gram. Other variants also experienced significant gains, with 22K rising to Dh253.5, 21K to Dh245.25, and 18K to Dh210.25 per gram.

Globally, spot gold was trading higher at $2,259.85 per ounce, marking a more than one percent increase in early trade. This reflects the ongoing strength in the gold market.

Analyst’s Forecast for April:

Saqib Iqbal, an analyst at Trading.biz, predicts that gold prices will fluctuate between $2,140 and $2,200 an ounce in April, with potential for further volatility ahead of the Federal Reserve’s April meeting.

Gold’s recent surge is attributed to US economic statistics, which have increased demand for gold while decreasing demand for other commodities. The Federal Reserve’s commitment to cutting interest rates in 2024 has also contributed to gold’s rise.

Analyst’s Perspective on Gold’s Future:

Saqib Iqbal believes that gold is unlikely to decline significantly in the near future despite its recent rally. 

While a temporary pullback may occur, a substantial decrease of more than 3 percent to 6 percent is unlikely due to the ongoing US disinflation story and strong market demand for gold.