Gold prices in the UAE are expected to rise further in the coming months, building on a nearly 21% gain this year. Analysts predict that the price of gold could reach $3,000 per ounce in the medium term due to several global economic factors.
The surge in gold prices has been primarily driven by expectations that the US Federal Reserve will cut interest rates, a weakening US dollar, and geopolitical tensions in the Middle East. As of last weekend, gold closed at $2,503.34 per ounce, after rising above $2,525 earlier in the week.
In Dubai, gold is currently trading at Dh303.25 for 24K, Dh280.75 for 22K, Dh271.75 for 21K, and Dh233 for 18K per gram.
Alex Kuptsikevich, a senior market analyst at FxPro, noted that gold hit a resistance level at $2,525 an ounce recently, which it has struggled to surpass for the past two weeks. The ongoing tension between rising support and horizontal resistance levels on the gold chart indicates strong buying pressure.
He explained that this pattern suggests that buyers are becoming more aggressive at higher price levels. This behavior has been observed since April, where gold prices have seen increasingly minor pullbacks, signaling a continued uptrend.
Vijay Valecha, chief investment officer at Century Financial, also expects the yellow metal to continue its upward trajectory. He forecasts that gold could reach a range of $2,700 to $3,000 per ounce in the coming months. This would translate to gold prices in the UAE ranging between Dh330 and Dh365 per gram.
Both experts emphasize that factors such as falling interest rates, ongoing geopolitical tensions, and increased demand from central banks could further support the rise in gold prices, making it a valuable asset for investors in the months ahead.
