Gold prices are fluctuating rapidly, achieving remarkable highs recently, with rates exceeding $3,500, as reported by AFP.
This upward trend persisted on Tuesday, as gold reached a new peak in Dubai and around the world, rising over 5 percent to exceed $3,480 per ounce. Specifically in Dubai, the price reached Dh420 per gram.
The 24K gold variant surged to Dh420.0 per gram on Tuesday, reflecting an increase of nearly Dh15 per gram within the last 24 hours. Concurrently, the 22K variant also saw a rise to Dh388.75 per gram, gaining over Dh13 per gram since the previous Monday.
For other gold types, 21K and 18K were priced at Dh372.75 and Dh319.5 per gram, respectively.
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Spot gold was recorded at $3,480.22 per ounce, increasing by 4.74 percent as of 9:20 am UAE time, driven by the weakness of the US dollar and ongoing US-China trade tensions. Earlier, it had jumped over 5 percent, surpassing $3,485 per ounce.
Numerous research and finance institutions have recently updated their projections for gold, estimating it to reach $3,500 per ounce. Several predict that it could hit $4,000 next year, yet if the tariff anxieties continue, it might approach the $4,000 mark within this year.
According to earlier reports from analysts and jewelers in Dubai, it is believed that gold prices will remain high and are not expected to experience significant declines.
“The weaker dollar and increased geopolitical risks, particularly those stemming from tariffs, have been major factors influencing gold’s performance. Additionally, strong purchases in gold ETFs across various regions are pushing prices up… Investor interest is poised to grow as gold gains prominence as a safe-haven asset and portfolio diversifier amidst global economic uncertainties and market fluctuations,” said Kavita Chacko from the World Gold Council.
Looking ahead, seasonal and wedding-related purchases are anticipated to boost gold demand in the upcoming months.