Gold Prices In Dubai: After Crossing $2,800, Will Yellow Metal Touch $3,000?

The yellow metal crossed $2,800 per ounce this week for the first time and reached a record $2,817.23 per ounce. In line with global rates, precious metal prices reached an all-time high, as 24K, 22K, 21K and 18K closed the week at Dh339.0, Dh314.0, Dh303.75 and Dh260.5 per gram, respectively. Spot gold closed the week at $2,798.49 per ounce, up 0.07 per cent.

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As reported by Khaleej Times last year, analysts predict precious metal hitting $3,00 an ounce in the first quarter of 2025 due to geopolitical tension, interest rate cuts and strong gold demand from the central banks.

Samer Hasn, senior market analyst at XS, said uncertainty about the future of global trade under Trump and its potential impact is fuelling hedging demand for gold from the US.

"Another aspect of uncertainty is the potential escalation of tensions between the US and China, not only due to the trade war but also the dispute over strategic interests in Panama Canal. Trump had threatened during his election campaign to regain sovereignty over the vital shipping channel,” said Hasn.

Gold's gains also came after US Federal Reserve chair Jerome Powell's speech after the Fed announced that it would hold interest rates steady .

“While the speech carried a still tightening tone and reflected the hesitation of monetary policymakers regarding the pace of rate cuts, it did not significantly change previous expectations that a rate cut would not be possible before next June. This has allowed gold to continue its gains, as inflation accelerated again last December and uncertainty about price pressures did not cause negative surprises in Powell's speech,” added Hasn.

Ruben Ferreira, head of operations at FlowCommunity, said the outlook for gold remains positive, with several major central banks, including the European Central Bank, the Bank of Canada, and the Swedish Riksbank, having implemented rate cuts, enhancing gold's appeal.“Although the Federal Reserve decided to keep rates unchanged, traders anticipate two rate cuts this year which could support gold,” added Ferreira.

“Looking forward, ongoing trade tensions may continue to bolster demand for gold. Should tariffs on Mexico and Canada materialise, gold could see more inflows and new record highs. However, a rollback in tariff threats might weaken gold's momentum,” he added.