Gold prices surged to a new all-time high on Friday as the dollar weakened amid prospects of a U.S. interest rate cut next week.
In the UAE, gold prices rose AED3 with 24-carat gold rising to AED311.25 and 22-carat gold inching up to AED288. Meanwhile, 21-carat gold reached AED279 and 18-carat gold was at AED239.
Globally, spot gold edged up 0.38 percent to $2,568.01 as of 5:13 GMT, after hitting a record high of $2,570.15 earlier in the session. Meanwhile, U.S. gold futures rose 0.59 percent to $2,595.90.
The dollar fell to a one-week low, losing 0.29 percent and making gold less expensive for other currency holders.
Fed rate cut prospects propel bullion
Gold prices had been steady near their previous record high before surging to a new all-time high earlier in the session. Analysts expect bullion to consolidate gains before rising to the $2,600 level if the U.S. dollar remains weaker.
As the Federal Reserve prepares to start a monetary easing cycle next week, non-yielding assets including gold will find additional support. The International Monetary Fund said on Thursday that it was appropriate for the Fed to begin a long-awaited monetary easing cycle at its meeting next week as upside risks to inflation have subsided.
Traders priced a 55 percent chance of a 25-basis-point rate cut next week and a 45 percent chance of a larger 50-basis-point rate cut, according to the CME FedWatch tool.
Investors currently await the release of preliminary U.S. consumer sentiment data due later in the day for additional insight into the monetary outlook.
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Other precious metals
The precious metals market saw positive movement as gold prices set a new record with spot silver gaining 0.27 percent to $29.99 and platinum rising 0.88 percent to $985.77. In addition, palladium inched up 0.74 percent to $1,048.10.
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