In response to expectations that the US Federal Reserve would decrease interest rates, early trading worldwide trading showed gold prices rose more than Dh1 per gram in the United Arab Emirates on Wednesday morning.
Data from the Dubai Jewellery Group indicates that the 24K was trading at Dh247 per gram on Wednesday at the start of trading, up Dh1.25 from Dh245.75 at the closing of the markets. At Dh228.75, Dh221.5, and Dh189.75, respectively, its versions 22K, 21K, and 18K made their debuts.
In its most recent meeting, the Federal Reserve held interest rates steady at 5.25–5.50% this past week, reiterating its commitment to reducing inflation by the end of 2023 and eliminating any plans to raise rates in 2024.
According to Rania Gule, a market analyst at XS.com, interest rate reductions of at least three times, each by 25 basis points, are generally anticipated by the markets in 2024. “Therefore, the US core inflation reading will influence market expectations regarding the timing of the Fed’s easing, possibly causing the US dollar to drop to its lowest point in four months and serving as a medium-term support for gold.”
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