Gold Prices Reach All-Time High; UAE Prices Stable
Gold prices soared to a record high on Monday, reaching $2,589, driven by a weaker dollar and increased anticipation of a significant interest rate cut from the U.S. Federal Reserve this week.
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In the UAE, gold prices remained stable, with 24-carat gold priced at AED313, 22-carat gold at AED290, 21-carat gold unchanged at AED280.50, and 18-carat gold at AED240.50.
Globally, spot gold increased by 0.27 percent to $2,586.05 as of 5:11 GMT, following its earlier peak of $2,589. U.S. gold futures also rose by 0.12 percent to $2,613.80.
The U.S. dollar index fell by 0.25 percent to 100.86, making gold more affordable for holders of other currencies.
Anticipated Rate Cuts
The likelihood of the Fed cutting interest rates by 50 basis points this week has bolstered gold prices and exerted downward pressure on the dollar. Analysts foresee further increases in gold prices, suggesting they could reach $2,700 by year-end if the dollar remains weak.
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Market focus is now on the Fed’s monetary policy meeting scheduled for September 17-18, with speculation surrounding the extent of the rate cut. The Bank of England and the Bank of Japan will also announce their policy decisions later this week.
Currently, markets estimate a 59 percent chance of a 50-basis-point cut on Wednesday, up from 43 percent on Friday, and a 41 percent chance of a 25-basis-point cut, according to the CME FedWatch tool. This would mark the first interest rate cut by the U.S. central bank since 2020.
Recent data indicates that U.S. consumer sentiment has improved in September amid easing inflation, although there remains cautiousness ahead of the November presidential election.
Rate Change of Other Precious Metals
The precious metals market also experienced positive trends, with spot silver increasing by 1.05 percent to $30.98, platinum rising by 0.25 percent to $997.75, and palladium climbing by 0.32 percent to $1,071.85.
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Economy Middle East
