Gold Prices Hit New Records Amid Global Rally

The rally in gold prices continued on Wednesday, with the UAE and global markets witnessing surges to new record levels. 

Inflation concerns fuel the precious metal’s ascent, driving investors to seek refuge in gold.

Gold Prices in the UAE:

In the UAE, the price of gold surged to unprecedented heights, with the 24K variant reaching Dh276.5 per gram on Wednesday morning. This marked a significant increase from Dh274.5 per gram recorded at the previous market close. 

Similarly, other variants, including 22K, 21K, and 18K, also reached record highs, trading at Dh256.0, Dh247.75, and Dh212.5 per gram, respectively.

Global Market Trends:

On the global front, spot gold prices exhibited a notable uptick, reaching $2,281.8 per ounce at 9:15 am UAE time. Earlier today, gold surpassed the $2,288 per ounce mark, indicating a substantial one percent surge. 

The prevailing sentiment driving this surge is the apprehension surrounding rising inflation rates.

Expert Analysis:

Nick Cawley, a senior strategist at dailyFX, remarked on gold’s recent performance, noting its consistent attainment of fresh record highs despite factors such as a stronger US dollar and elevated US interest rates. 

Cawley highlighted a bullish technical flag setup and emphasized the need for consolidation amidst overbought conditions. 

Despite potential short-term fluctuations, Cawley’s analysis suggests a continued upward trajectory for gold prices, buoyed by prevailing market sentiment.