Gold prices will rise by $40 to 1,760 levels due to global recession talk.
Dubai: The Dubai Gold Rate has risen to Dh200 per gram for 22K gold today. It currently stands at Dh200.50. With gold prices reaching $1,760 per ounce, the local rates will continue to rise.
Since Wednesday evening, when the US Federal Reserve raised interest rates by 0.75 percent, gold has gained $40/oz. There has been renewed talk about a global recession, particularly with the US economy shrinking in the second quarter. Gold as a safe-haven asset is magnified whenever there’s talk about recession.
Gold Prices Rose In A Week
A jewelry retailer stated that UAE shoppers will be avoiding buying more, especially since the Dubai Gold Rate rose by approximately Dh10/g within a week. All those who purchased this month’s gold when it was below Dh195/g will benefit. Although a Dh10/g price difference may not seem significant, the recent increases will cause a major psychological shock to shoppers. It will take some time for them to adjust to Dh200+.
The two-day spike in jewelry sales will not be a problem for jewel retailers. They have had a lot of heavy buying over the last month, which has given them the cushion they need. Many shoppers also brought ahead their wedding/other purchases in order to take full advantage of the drop in gold to Dh192 levels. Follow Us On Linkedin