Tuesday, 02 January 2024 12:17 GMT

Dubai: 22K Gold Price Crosses Dh400 Per Gram For The First Time


(MENAFN- Khaleej Times)

The 22K gold prices hit a new all-time high in Dubai on Saturday, crossing Dh400 per gram for the first time.

According to the Dubai Jewellery Group data, 24K rose to Dh432.25 per gram, while 22K reached Dh400.25 per gram. Similarly, 21K and 18K were also trading at an all-time high of Dh383.75 and Dh328.75 per gram, respectively.

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The 24K gold price in Dubai has jumped Dh116 per gram so far this year as it has risen from Dh316.25 to Dh432.25, while 22K has gained by 107.25 year-to-date.

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As prices rise, consumers in the UAE and other countries often reduce their purchases of gold jewellery, coins, and ornaments due to affordability concerns, leading to a decline in demand. However, gold jewellers are hopeful for higher sales during the upcoming festivals and wedding seasons.

Gold prices shot up in the UAE and globally after weak US job data further raised expectations for the US Federal Reserve rate cuts .

On Friday, the US economy added just 22,000 jobs in August, with the unemployment rate at 4.3 per cent, the highest since 2021.

Spot gold was trading at $3,586.76 per ounce, up 1 per cent.

Aaron Hill, chief market analyst at FP Markets, said a whopping 150 bps of easing is now priced in for 2026, with 60 bps worth of cuts implied for the end of this year and September's meeting all but fully priced in.

“While I agree that the job market is beginning to show signs of strain, is 150 bps a little far-fetched, given that inflation is still persistently above the Fed's 2.0 per cent target? Is this a case of the market getting ahead of itself here? Stubbornly higher inflation will obviously dent market expectations of faster cuts, while naturally disinflation will have an opposite effect,” he said.

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