Mon, May 20, 2024 | 12 Dhul-Qadah 1445
Mon, May 20, 2024 | 12 Dhul-Qadah 1445
Gold prices are going up in Dubai on the first trading day of the year. The 24K gold variant started at Dh250.5 per gram, rising by Dh0.75 from last week's closing price of Dh249.75 per gram. Other variants like 22K, 21K, and 18K opened at Dh232.0, Dh224.75, and Dh192.5 per gram, respectively.
As of 9:45 am UAE time, spot gold is up by 0.45%, reaching $2,072.15 per ounce. This increase is due to the expected interest rate cuts in 2024 from the US Federal Reserve. Gold faced a decline in the third quarter of 2023 but turned around in the fourth quarter as the dollar and yields dropped sharply.
Richard Snow, a strategist at dailyFX, expects the first quarter of 2024 to see a slowdown in US growth and further progress in inflation, leading to pressure on the Fed to consider cutting interest rates. He says gold proves its value as a safe-haven asset during banking turmoil and geopolitical tensions.
Kelvin Wong, a senior market analyst for Asia Pacific at Oanda, emphasizes that the short-term bullish trend in gold remains as long as it stays above the key support level of $2,017 per ounce. Rania Gule, market analyst at XS.com, predicts that gold prices will stay above $2,000 in the short term.
