Due to geopolitical unrest in the Middle East and anticipation of rate cuts by the US Federal Reserve, gold prices increased globally on Friday, and this trend continued in the United Arab Emirates.
The price of the precious metal in the United Arab Emirates increased by half a dirham to Dh297.5 per gramme on Friday morning, whereas the prices of the 22K, 21K, and 18K variants were Dh275.5, Dh266.5, and Dh228.5 per gramme, respectively.
In an earlier interview with Khaleej Times, Century Financial CIO Vijay Valecha stated that predictions point to a positive trajectory for gold, with a possible target range of $2,700–$3,000, or Dh330–Dh365 in the coming months.
The market goes into the US nonfarm payrolls strong and for good reason, according to Chris Weston, head of research at Pepperstone, the wind is in gold’s favour.
Undoubtedly, a poor US payrolls report will push US swaps pricing even closer to a 50bp cut in September. This will also drive down the US 2-year yield and push gold to a new all-time high and closer to $2,500, he added. Notably if the unemployment rate ticks up to 4.2 per cent or above.
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