Gold prices in Dubai soared on Thursday, reaching a new all-time high after the U.S. Federal Reserve announced a 50-basis-point interest rate cut on Wednesday. The price of 24K gold jumped to Dh313.75 per gram, surpassing the previous record of Dh313.50 set earlier in the week.
Other gold variants also saw significant increases: 22K was trading at Dh290.50, 21K at Dh281.25, and 18K at Dh241 per gram.
After opening lower for three consecutive days, gold rebounded globally, climbing over 1% to nearly reach $2,600 per ounce in previous trading sessions. As of 3 PM UAE time, gold was priced at $2,588.04 an ounce, marking an increase of 1.13%.
Bas Kooijman, CEO and asset manager at DHF Capital, noted that the Federal Reserve’s decision has positively impacted the gold market. “The 50-basis-point rate cut may extend the current upward trend in gold prices, potentially leading to more record highs,” he said. Kooijman explained that this rate cut signals the beginning of a broader cycle of interest rate reductions that could increase demand for gold and similar assets.
The Fed’s updated projections indicate a steeper decline in interest rates than previously anticipated, which could further bolster gold’s appeal as a safe-haven investment.
As investors react to these developments, the outlook for gold remains optimistic, with many anticipating continued price increases in the coming months.
