The gold price surge continued on Wednesday morning as the precious metal rose by Dh1.75 per gram, reaching a new record high at the market opening in the UAE.
As of 9 a.m. UAE time, the price for 24K gold climbed to Dh333 per gram, up from Dh331.25 at the previous market close. The 22K variant increased by Dh1.5 per gram, reaching Dh308.25 in early trading. Similarly, 21K and 18K gold prices rose to Dh298.50 and Dh255.75 per gram, respectively. Spot gold was trading at $2,750.70 per ounce, up 1.07 percent, at 9:15 a.m. UAE time.
The yellow metal has consistently increased over the past few months, achieving new record highs almost daily. Some analysts, as reported by Khaleej Times earlier, project that gold could reach $3,000 per ounce in the first quarter of 2025. Gold has risen over 40 percent year-on-year, while silver, following a significant breakout on Friday when it closed above previous resistance at $32.50, has surged to a 50 percent year-on-year increase.
“Throughout the year, we have extensively discussed why 2024 would be pivotal for investment metals. While this recent rally has exceeded expectations, several factors continue to support the upward trend despite emerging challenges,” said Ole Hansen, head of commodities strategy at Saxo Bank.
“Despite rising yields and a stronger US dollar, gold and silver have continued their ascent… Meanwhile, the timing, pace and depth of future rate cuts have slowed, with Federal Reserve officials signalling a more cautious approach. Yet, gold and silver remain resilient, defying these typically negative market signals,” added Hansen.
He further explained that gold has advanced despite the recent strength of the US dollar, which has been bolstered by Middle East haven flows and strong US economic data, driving investments into American risk assets.
