On Wednesday morning, the 24K gold price jumped nearly Dh3 to Dh558 per gram while 22K reached Dh516.75 per gram in early trade
Gold and silver prices scaled a new high in Dubai and globally, driven by global uncertainties around geopolitics and economic conditions, as well as growing expectations of interest rate cuts by the US Federal Reserve.
On Wednesday morning, the 24K gold price jumped nearly Dh3 to Dh558 per gram while 22K reached Dh516.75 per gram in early trade. Among the other variants of the yellow metal, 21K, 18K and 14K rose to Dh495.5, Dh424.5 and Dh331.25 per gram, respectively.
Globally, spot gold was trading at a record high of $4,637.81 per ounce, up one per cent. Similarly, silver prices also jumped above the $90 mark for the first time, reaching $91.53.
The geopolitical tension between Iran and the US continues to support safe-haven commodities.
Moreover, the US CPI for December came in at 2.7 per cent, largely in line with expectations.
Vijay Valecha, chief investment officer, Century Financial, said the rally in precious metals is due to several factors, including concerns about the Federal Reserve’s independence, growing geopolitical risks, and ongoing expectations of an easier US monetary policy.
“Demand for gold has grown as Federal Reserve Chair Jerome Powell faces pressure, including reported legal threats related to congressional testimony. A weaker US dollar also supports non-yielding assets, such as bullion. Rising tensions in Iran, ongoing US actions in Venezuela, and global instability have made gold even more attractive as a safe-haven investment,” he said.
Technically, Valecha sees gold facing resistance around $4,660.
Source:www.khaleejtimes.com