Gold prices in United Arab Emirates (UAE) nearly touched an all-time high of $2,070 per ounce after hitting $2,062 in the last 24 hours and then settling at $2,043.
The development comes after Gulf central banks raised interest rates in line with US Federal Reserve (The Fed). The Central Bank of UAE (CBUAE) also increased the base rate on overnight deposits by 25 basis points to 5.15%.
The Fed assured that there will not be any further increase, giving consumers an opportunity to purchase more gold as a means to beat inflation. The Fed’s decision is also likely to affect other sectors such as Bitcoin and Asian stock markets.
Currently, the gold rate in UAE stands at AED 229 per gram for 22K, up from AED 221 during the last 10 days. The rise and fall of gold prices have been met with mixed reactions by consumers.
According to Senior Market Analyst Edward Moy at Oanda, gold prices have taken a lot of time to reach record highs. If the Fed does not increase interest rates further, it can lead to changes in the market soon, he projected.
