Following a 0.84% increase yesterday, gold reached a record high of $3,508.90 in early trading today, as expectations of Federal Reserve rate cuts and rising concerns over the central bank’s independence fueled the multi-year rally in precious metals.
Vijay Valecha, Chief Investment Officer, Century Financial, shared that the ETFs added 104,284 ounces of gold to their holdings in the last trading session, bringing this year’s net purchases to 10 million ounces, marking the seventh consecutive day of growth.
“The rally also reflects a softer dollar and strong demand from central banks as investors rotate out of U.S. Treasuries. Further, the investors will be closely watching the NFP data due this Friday and the court ruling on whether Trump has legitimate grounds to remove Fed Governor Lisa Cook from the central bank. A weaker NFP print and the removal of the Fed governor will likely send the precious metal higher,” he added.
Technically, gold has broken out of a three-month consolidation range, reaching an intraday peak of $ 3,508.9 and surpassing the $ 3,500 mark last seen in April.
It remains above the 9 and 21-day SMA levels of $3,410.50 and $3,378.82, indicating short-term bullish momentum. On the 4-hour timeframe, a close above $3500, which is a key resistance, would confirm further gains and potentially push prices toward $3550. If not, support is likely around $ 3,470, then $3,450.
Gold prices in the UAE are as follows –
24 Carat – AED 421.50
22 Carat – AED 390.25
21 Carat – AED 374.25
18 Carat – AED 320.75
