Gold prices in the UAE are on the brink of surpassing Dh310 per gram as geopolitical uncertainties and anxieties around US Federal Reserve interest rate decisions intensify. Analysts urge investors to proceed with caution given the metal’s recent surge to near-record highs.
On Tuesday evening, the price of 24K gold in the UAE stood at Dh292.75 per gram, with 22K at Dh271.25, 21K at Dh262.5, and 18K at Dh225 per gram. Meanwhile, spot gold prices reached $2,428.05 per ounce on Tuesday afternoon, reflecting a slight increase, with previous sessions nearing $2,450 per ounce.
Shadi Mashkok, CEO of Grand Capital, suggests that should gold surpass $2,433 per ounce, the next likely threshold will be $2,500, driven by global economic distress pushing investors towards safer assets. “My estimate is that gold could eventually reach as high as $2,950 per ounce as people seek stability in uncertain times,” Mashkok added.
This projection aligns with potential geopolitical escalations and the prospect of a new currency introduced by BRICS nations, which could diminish the US dollar’s strength and subsequently bolster gold prices. According to Mashkok, such developments could drive the 24K gold price in the UAE beyond the Dh310 mark.
Shadi Salloum, regional director for Mena at XS.com, echoed these sentiments, citing that gold’s sharp rise from $2,200 to $2,450 earlier this year was fueled by central bank purchases and ongoing geopolitical tensions. “The market is volatile, and while gold has stabilized somewhat, the ongoing geopolitical landscape and upcoming decisions by the Federal Reserve could significantly influence its price,” said Salloum.
He anticipates that gold will oscillate between $2,391 and $2,450 in the coming weeks, with potential to reach $3,000 should extraordinary geopolitical events or unexpected Federal Reserve actions occur.
Salloum advises investors to adopt a cautious approach to trading gold. “The nature of gold is very sensitive; it’s crucial for traders to manage their investments prudently and avoid taking on excessively large positions that could lead to significant losses,” he cautioned.
Supporting these insights, Swiss bank Julius Baer noted that recent demand for gold has shifted, with significant buying from Chinese investors and the People’s Bank of China. “Unlike western investors who are attracted to high-grade bonds, the motivations of these new eastern buyers are more political, increasing their willingness to invest in gold,” the bank explained.
As the situation unfolds, the price of gold in the UAE remains a critical watch point for investors and analysts alike, with market conditions ripe for significant shifts.