By dubailife 
According to data from the Dubai Jewellery Group, the price of 24K gold surged by Dh3 per gram to Dh305.75 per gram on Tuesday afternoon, marking an all-time high for this variant of the precious metal.
Similarly, the prices of 22K, 21K, and 18K gold also reached record highs, selling at Dh283.25, Dh274.0, and Dh235.0 per gram, respectively.
On the global stage, spot gold was trading at $2,525.01 per ounce, up 0.86% at 4:10 PM, driven by expectations of a US Federal Reserve rate cut.
Mohamed Hashad, Chief Market Strategist at Noor Capital, noted that the past week has seen a significant rebound in equity markets, with the S&P 500 and the Canadian TSX rising by over 6.5% and 5%, respectively, since their lows on August 5. This rebound appears to be fueled by two main factors: ongoing moderation in inflation and strong economic performance, particularly in the US.
“Traders and analysts have identified these factors as key drivers behind gold’s surge. The metal’s performance has been further boosted by recent data indicating a potential slowdown in inflation, which could prompt the Fed to adopt a more accommodative monetary policy. While gold has captured attention, other precious metals have shown mixed results,” Hashad explained.
He added that as investors look ahead to the upcoming Jackson Hole economic symposium, where Fed Chair Jerome Powell is set to speak, they expect to gain valuable insights into the Fed’s future monetary policy direction. Gold’s record-breaking performance reflects a combination of economic and geopolitical factors, making it a highly sought-after asset for investors seeking both returns and protection.
Chris Weston, Head of Research at Pepperstone, remarked that there is a view that Powell’s speech at Jackson Hole could significantly impact US interest rates, posing a major risk to the yellow metal.
“However, while we remain open to potential price movements and aim to respond objectively, my baseline expectation is that Powell’s tone will match market expectations closely. As a result, the US swaps and Treasury markets should not experience a shock, and those holding gold in anticipation of a 50bp rate cut by Powell may need to reconsider their positions,” Weston said.
Source : Khaleejtimes