Gold prices remained close to their all-time high on Friday and were on track to record a weekly gain after the U.S. Federal Reserve cut interest rates and signaled further cuts soon.
In the UAE, gold prices surged AED2.25 with 24-carat gold inching up to AED314 and 22-carat gold rising to AED290.75. Meanwhile, 21-carat gold reached AED281.50 and 18-carat gold was at AED241.25.
Globally, spot gold rose 0.24 percent to $2,593.56 as of 5:07 GMT, after hitting a record high of $2,599.92 on Wednesday. Gold prices have gained around 0.6 percent this week. Meanwhile, U.S. gold futures rose 0.14 percent to $2,618.20.
The dollar index fell 0.05 percent to 100.56, making gold less expensive for other currency holders.
Favorable market conditions support bullion
Gold prices rose to a record high on Wednesday after the Fed began easing monetary policy with a 50-basis-point rate cut. The central bank also projected a further half-point reduction by year-end, a full point next year, and an additional half-point in 2026.
Favorable market conditions have so far supported the surge in gold prices this year. Analysts say that, if these trends persist, prices could rise to as far as $2,800 in the next year.
Lower interest rates coupled with constant geopolitical uncertainty increase the appeal of holding non-yielding assets like gold.
Elsewhere, China, the world’s largest gold consumer, refrained from importing gold from Switzerland in August for the first time since January 2021, customs data from the world’s biggest bullion refining and transit hub showed on Thursday.
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Other precious metals
The precious metals market showed mixed movements as gold prices remained near their new record high. Spot silver gained 0.84 percent to $31.04 while platinum fell 0.06 percent to $988.25. However, palladium inched up 0.51 percent to $1,086.09.
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