ALBAWABA — Gold prices were mixed on Friday as investors digest worldwide central banks’ interest rate hikes and look for containment of the ongoing banking crisis and repercussions from external pressures.
For the second time in a week, the price of gold reached and briefly surpassed a price per ounce of $2,000, reaching 2002.590 on Thursday around 14:15 EDT. On Monday, gold reached $2,000 for the first time in 2023 when it briefly rose as high as $2,007.90 at around 03:45 EDT and dipped back down to about the $1,935 level mid-week.
Gold’s all-time high was $2,075 in August 2020.
On the international market, spot gold was down 0.34 percent at $1,989.10 a troy ounce, at 1:02 p.m. United Arab Emirates time.
The precious metal’s prices went up in the U.A.E. against global rates on Friday.
The Dubai Jewelry Group data showed 24K gold price opening higher at 241.25 dirhams per gram as compared to yesterday’s closing at Dh240.25 per gram.
Similarly, 22K, 21K and 18K also opened higher at Dh223.50, Dh216.25 and Dh185.25 per gram, respectively, closing the day before at Dh222.50, Dh215.50 and 184.75 respectively.
“I think it’s very plausible that we see a strong performance in gold over the coming months. The stars appear to be aligning for gold which could see it break new highs before long,” Craig Erlam, a senior market analyst at foreign exchange company Oanda, told CNBC.
“Interest rates are at or near their peak, cuts are now being priced in sooner than anticipated on the back of recent developments in the banking sector,” said Erlam, who added that he thinks that dynamic will boost gold demand, even if it coincides with a softer dollar.