Gold prices in Dubai saw a slight increase on Wednesday morning as the markets opened, continuing a positive trend in the precious metal’s price movements. The price of 24K gold rose by half a dirham per gram, reaching Dh317, up from Dh316.5 at the previous market close. Other gold variants also saw upward movement, with 22K, 21K, and 18K gold priced at Dh293.5, Dh284, and Dh243.5 per gram, respectively.
While global markets were largely closed due to the Christmas holiday, spot gold was priced at $2,616.45 per ounce, reflecting the ongoing shifts in the global gold market.
Gold’s recent movements have been influenced by a series of key economic events, including the US Federal Reserve’s recent decision to cut interest rates by 25 basis points. This, along with a more cautious approach to future rate cuts and persistent concerns over inflation, has provided significant support to gold prices. Last week, gold tested resistance around the $2,600 level before stabilizing and rebounding toward $2,620 per ounce.
Ahmad Assiri, a research strategist at Pepperstone, noted that gold’s price is expected to remain within a tight range of $2,620 to $2,660 during the holiday period due to seasonally lower trading volumes. “The market is closely watching inflation trends and fiscal policies, both of which continue to provide strong support for gold,” Assiri explained. He added that if inflation concerns escalate or if the Federal Reserve indicates further changes to its monetary policy, gold could see further gains in the short term.
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