UAE gold prices could hit new highs soon: Gold gains due to Fed rate cut bets

Gold is seen as a safe-haven asset during times of geo-political uncertainty

Published: December 26, 2023 13:30 Last updated: December 27, 2023 14:14 Dona Cherian, Assistant Online Editor and Inputs from Reuters and Bloomberg

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As the year draws to a close, UAE gold shoppers may see another hike, which analysts predict could surpass the highs seen in 2023. The surge in prices is being attributed to growing prospects for rate cuts by the Federal Reserve as early as March, 2024. Image Credit: AFP

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Bullion is trading near a record high, heading for its first annual increase in three years, as data showing US price pressures easing reinforces expectations for multiple rate cuts in 2024. Image Credit: AFP

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On Wednesday, UAE gold prices for 22K jewellery stood at Dh232 as of 2pm. Markets are now pricing in a 75 per cent chance of a 25 basis points rate cut from the Fed in March, according to the CME FedWatch tool. Image Credit: AFP

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Markets are also pricing in more than 150 basis points of rate cuts next year. This could mean even higher prices for the precious metal in 2024. *Read more about this here (copy and paste link into your browser): https://gulfnews.com/1.1700154344673 Image Credit: Virendra Saklani/Gulf News

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For people who want to buy new gold jewellery, exchanging old gold could be the most affordable option and jewellers are promoting special offers for this kind of exchange. Some retailers are also offering discounts on making charges to attract shoppers. Image Credit: Virendra Saklani/Gulf News

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If you bought gold for investment, 2024 is expected to see high rates, especially before March. *Read more about gold investments here (copy and paste link into your browser): https://gulfnews.com/1.1701864947379 Image Credit: Virendra Saklani/ / Gulf News

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If you're looking for new jewellery purchases for daily wear or festive gifts, the most affordable kind would be 18K gold - which is selling for Dh192.50 per gram on Wednesday afternoon. *Get the latest UAE gold prices here (copy and paste the link into your browser): https://gulfnews.com/gold-forex Image Credit: Shutterstock

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