The gold price in Dubai is not stopping these days. On September 11, gold is once again trading with a jump. A similar rise has been seen in gold for some time now. Investors are eyeing the US Federal Reserve meeting to be held next week. It is expected that interest rates may be cut, which will directly benefit gold.
Gold prices remained high in Dubai on Thursday morning, with 22-carat gold above 400 dirhams per gram for the fifth consecutive day. After touching a high of 406 dirhams yesterday, it opened at 407.25 dirhams per gram. The price of 24-carat gold reached 440 dirhams per gram.
Gold held steady slightly below record levels after a surprise drop in US producer prices raised expectations of a Federal Reserve interest rate cut. Prices remained steady at $3,642 an ounce, about $32 below the all-time high set earlier this week.
The Federal Reserve is scheduled to announce its next monetary policy next week. Traders widely expect the central bank to cut rates twice this year, possibly starting with a modest reduction next week, supporting a rise in gold prices globally.
Gold is up 40% this year
Gold has risen about 40% this year on the back of central bank buying, anticipation of rate cuts and geopolitical tensions. Political uncertainty in the US and global trade concerns have also strengthened gold’s appeal as a safe-haven investment.
Analysts say gold prices could rise further if pressure on the Fed increases or investors move money out of US bonds and into gold. Some forecasts even suggest that prices could reach $5,000 an ounce in the long term. For UAE buyers, this trend means that store prices will now rise, with further increases likely.
Global price of gold
Globally, gold prices are witnessing a decline. Gold was seen trading at $3,632.86 an ounce, down 0.27 percent or $9.95 on Comex.
Global price of silver
Apart from gold, global prices of silver are also witnessing a decline. The global price of silver was seen trading at $0.17 an ounce, down 41.08 percent or $0.07 on Comex at 11:40 am on Thursday.