Gold prices in Dubai have reached new record highs as of October 23, 2024. The price for 24K gold has soared to Dh333 per gram, while 22K gold is now priced at Dh308.25 per gram. This surge comes as spot gold traded at $2,750.70 per ounce, marking an increase of 1.07%. Notably, gold has gained over 40% year-on-year, with analysts predicting that prices may reach $3,000 per ounce in the first quarter of 2025. Ole Hansen from Saxo Bank commented that gold's rise persists despite a stronger U.S. dollar and increasing yields, indicating robust demand in the market. Additionally, silver has also seen significant growth, with a 50% year-on-year gain.
Previously, on September 18, 2024, gold prices in Dubai had experienced a decline after peaking at Dh313.5 per gram on September 16, 2024. At that time, the 24K gold variant was trading at Dh311 per gram, reflecting a decrease attributed to expectations surrounding potential interest rate cuts by the U.S. Federal Reserve. Analysts noted that the fluctuations were influenced by a weaker dollar and anticipated monetary policy easing, which enhanced gold's appeal as an investment. Market participants were closely monitoring economic indicators and Fed communications for further direction, with a 93% chance of an interest rate cut in September, according to the CME Fedwatch Tool.
The recent surge in gold prices can be linked to ongoing geopolitical tensions and increased demand from countries like India, where gold imports from the UAE have significantly risen. The reduction in import duties in India has made purchasing gold in Dubai more attractive, further solidifying Dubai's reputation as a global jewelry hub. As the market continues to adapt to these changes, the outlook for gold remains closely tied to economic developments and investor sentiment, reflecting a complex interplay of factors affecting prices in both local and global markets.