Gold prices in the United Arab Emirates (UAE) nearly reached an all-time high of $2,070 per ounce, having reached $2,062 in the previous 24 hours before settling at $2,043.
The move comes after Gulf central banks boosted interest rates by the Federal Reserve of the United States (the Fed). The Central Bank of the UAE (CBUAE) also raised the overnight deposit base rate by 25 basis points to 5.15%.
The Fed has confirmed that there will be no more increases, allowing customers the opportunity to buy more gold to combat inflation. The Fed’s decision is also expected to have an impact on other industries, including Bitcoin and Asian stock markets.
The gold pricing in the UAE is currently AED 229 per gram for 22K, up from AED 221 in the previous ten days. Consumers’ reactions to the increase and decrease in gold prices have been diverse.
Gold prices have taken a long time to reach new highs, according to Senior Market Analyst Edward Moy of Oanda. If the Fed does not raise interest rates further, he predicts that the market will change shortly.
