Gold bars are pictured on display at Korea Gold Exchange in Seoul, S
Gold's having quite the moment - running up to $2,062 an ounce and then now settling around $2,036. Investors are piling in. Image Credit: Reuters

Dubai: In what’s been a volatile 24 hours, gold prices soared to $2,062 an ounce and briefly threatened to set a new all-time high by breaking past the existing record of $2,070. Gold is currently at $2,043 as the bullion market reacts to the US Federal Reserve’s latest rate hike.

And that there will not be more increases, at least for the time being. “The markets were awaiting a clear signal from the Fed that this wouldn’t be more rate increases,” said an analyst. “They got that, and investors in gold are making full use of that to buy themselves some additional inflation hedging.

“Bitcoin too could be in for a lift after the Fed announcement, but Asian stock markets already have.”

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Whatever the cause, for shoppers in the UAE and elsewhere, it’s been a double-edged outcome. The UAE gold rate is at Dh229 a gram for 22K, and through the last 10 days has been above Dh221.

"The journey to record highs has been a long one for gold, but if the Fed is truly done lifting rates, further tightening of credit conditions could be the key catalyst," said Edward Moy, Senior Market Analyst at Oanda.