Gold price sets another record surging to $2,568 - is $2,600 happening soon?
Bullion prices climb more than $50/oz today and take asset closer to $2,600
Dubai: Gold prices gained an eye-popping $50 plus today to set another all-time high of $2,567 an ounce, clearing the previous best of $2,530. The UAE gold rate for 22K is currently at Dh285 a gram, and will soon start reflecting the latest surge in global bullion price movements. (The lowest UAE gold rate in last 10 days was Dh278.5.)
At 9am, the UAE gold rate for today (September 13) was set at Dh288 a gram for 22K.
Some volatility was to be expected in the days leading up to the widely expected US Federal Reserve rate cut. But to gain as much as $50 in a matter of hours to race to another record still takes some doing.
Shoppers in the UAE have naturally been quiet on the gold buying front, unless they are opting for exchanging their old jewellery for new collections. “Those consumers wanting to buy gold as an investment, the best way to do so would be to go for an exchange scheme,” said a jeweler. “Make use of every available promotion so that if they do buy new gold now, what they spend on making charges will still be on the lower side.”
Gold started this year at $2,059.
Some gold owners will be thinking of cashing in completely rather than buy new. Some tourists to the UAE have already been doing so ever since gold cleared $2,500 in August. "Cashing out is a trend we have been seeing among tourists in recent days," said a gold retailer. "Unlike resident gold buyers, these tourists prefer to take the cash rather than buy new gold."
What’s been helping gold’s gains is the extended spell of weakness of the US dollar.
Will a cooling off happen for gold?
Most in the industry were caught off guard by this surge that’s been happening in just a matter of hours. Just consider this detail - gold has put on $100 in just the last 30 days.
A risk-on tone swept through markets, boosting sentiment across commodities, with gold hitting a record high
Can gold sustain this push towards $2,600? Analysts say it's only a matter of time, but there could also be some heavy profit taking by funds and institutional investors that could lead to gold prices dropping from current levels. Even then, the price drop may not be that much.
"There is still ample demand among UAE consumers for gold - the question now is what's an 'ideal' price to buy," said a jeweller. "It's those shoppers who don't have any gold to exchange that's staying away en masse ever since gold went past $2,400 and then $2,500. But it's unlikely even after a price correction, gold is suddenly going back to $2,000 levels."