Gold Prices Surge: 22K Hits High in Dubai
The Rise of Gold Prices Continues: 22K Exceeds 310 Dirhams per Gram
The momentum in the gold market is further strengthening, with the price of 22-carat gold in Dubai already surpassing 310 dirhams per gram. Due to increasing global uncertainties and geopolitical risks, gold is becoming an increasingly sought-after investment asset.
Current Gold Prices in Dubai
According to the latest data from the Dubai Jewellery Group, the price of 24-carat gold stands at 335.75 dirhams per gram, while 22-carat gold opened at 310.75 dirhams on Friday morning. Among other popular gold types, the price of 21-carat gold was 301 dirhams, and 18-carat was 258 dirhams per gram.
Globally, the spot price of gold rose to $2,771.01 per ounce, marking a 0.52% increase. The markets are being influenced by U.S. economic policies, particularly Donald Trump's tariff strategies and demands for lower interest rates.
What's Behind the Rise in Gold Prices?
Gold has undergone significant price increases over the past week. According to Ole Hansen, head of commodity strategy at Saxo Bank, the price hikes accelerated after gold broke through the $2,725 resistance level. This has paved the way for a possible retest of last year’s record $2,790 level.
Hansen emphasized that the bank remains optimistic about the future prospects of gold and silver prices. The demand for investment metals is primarily driven by growing geopolitical uncertainties, as global tensions and economic changes motivate investors to turn to safer assets.
Trump 2.0 and the Future of the Gold Market
Experts suggest that the potential return of Donald Trump to the U.S. political arena could bring additional tensions. Analysts warn that further tariff measures could increase inflation, and a weakening dollar might add further momentum to gold prices.
Investors are increasingly turning their wealth into gold, as economic uncertainty and inflationary pressures raise concerns in global markets.
What to Expect for Gold Prices in the Near Future?
1. Technical Factors: Experts say that if gold breaks through the $2,790 level, new peaks could follow.
2. Economic Factors: Lower U.S. interest rates could increase gold's appeal as it remains a safe investment alternative amidst lower returns.
3. Inflationary Effects: Rising inflation expectations can also boost demand for gold, particularly in emerging markets.
Summary
Dubai's gold market continues on a growth trajectory, thanks to global economic and political uncertainties. Gold serves as a safe haven for investors, and based on current trends, further price increases can be expected.
