Due to persistent central bank purchases, concerns about a potential US government shutdown, and ongoing geopolitical tensions, gold prices may soon reach a record high of $4,000 per ounce. Market analysts warn that the recent boom might be coming to an end, though, with some forecasting a price correction soon. Gold jumped to a record high of $3,949 an ounce on Monday. In the United Arab Emirates, the price of 24K gold was a record Dh475 per gram, while that of 22K was Dh440.
Exness’s Financial Market Strategist Lead, Wael Makarem, ascribed the spike to increased geopolitical unpredictability and anticipation of interest rate reductions. On the sidelines of the Forex Expo Dubai, Makarem told Khaleej Times that there may be downward pressure for gold due to worries about a US government shutdown and indications of a potential slowdown in the nation’s deficit growth. “The momentum hasn’t slowed, and we’re now almost above $4,000. However, when markets rise swiftly, investors should exercise caution because corrections can happen just as quickly.
According to Shadi Salloum, Regional Director for Mena at XS.com, there won’t be any opposition to gold reaching $4,000 this year. The price of an ounce of gold recently reached $3,930. Safe-haven investments like gold have historically increased in value during times of economic instability or geopolitical unrest,” he noted.
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