Dubai, Oct. 17, 2024 — Gold prices soared to an all-time high in Dubai on Thursday, with 22K gold surpassing Dh300 per gram for the first time. According to data from the Dubai Jewellery Group, the price of 24K gold opened at Dh324.25 per gram, up from Dh323.75 at Wednesday’s market close.
The 22K variant opened at Dh300.25 per gram, reflecting an increase of Dh0.50, while 18K gold also saw a rise, opening at Dh249.25 per gram.
Globally, gold was trading at $2,678.58 per ounce, marking a 0.17% increase as of 9:10 AM UAE time.
Dilin Wu, research strategist at Pepperstone, noted that gold bulls are gaining momentum, with prices hitting all-time highs in most G10 currencies. Wu attributed the surge to strong demand for gold, rather than mere currency fluctuations, predicting that prices could reach the $2,700 mark by the end of October. The current uncertainty surrounding the US economic outlook is a significant driver of rising gold prices.
Wu pointed to several factors impacting gold’s trajectory, including higher-than-expected initial jobless claims and warnings from Federal Reserve Governor Christopher Waller about potential job losses impacting October’s nonfarm payrolls. These elements, combined with a substantial $1.8 trillion US deficit, have heightened concerns about the economic outlook, leading investors to seek gold as a safe haven amid increased market volatility.
Looking ahead, Wu identified three key factors to watch: US retail sales data, upcoming speeches from Federal Reserve officials, and the economic outlook in China. She emphasized that a weak retail sales report could further bolster gold prices, while developments in the US political landscape, particularly regarding the election, may also influence market dynamics.
As investors remain cautious, the current economic landscape suggests that gold will continue to be a focal point for those seeking stability amidst uncertainty.
