Introduction to Gold Prices
Gold prices have been rising due to expectations of an interest rate cut by the U.S. Federal Reserve. The probability of a September rate cut is over 90 percent, which reduces the opportunity cost of holding non-yielding assets like gold. This has led to a strong driver for higher gold prices globally.
Factors Influencing Gold Prices
The dovish monetary policy stance is a key factor driving gold prices higher. Additionally, central banks, especially in Asia, continue to buy gold, supporting demand and strengthening prices. In Dubai, gold rates have shown a slight increase, with 24 carat gold priced at AED419 per gram, 22 carat at AED388 per gram, 21 carat at AED372 per gram, and 18 carat at AED318.75 per gram.
Global Market Trends
Globally, gold prices have also risen, with the international benchmark price reaching approximately $3,471 per troy ounce. This marks a 0.64 percent increase from the previous day and a continued bullish momentum since early 2025. The COMEX price for gold stands between $3,300 and $3,534 per ounce, with analysts forecasting potential retests of record highs if conditions materialize.
Central Bank Purchases
Central bank purchases, particularly in Asia, continue to support gold demand and price stability. The overall global market sentiment remains bullish, with strong support from factors such as ongoing central bank gold purchases, geopolitical uncertainties, and inflationary concerns that boost gold’s safe-haven appeal.
Expert Forecasts
Expert forecasts from major banks like Goldman Sachs and J.P. Morgan predict gold prices could climb further, with year-end targets reaching up to $3,700 per ounce. The drivers behind this gold price strengthening include expectations of a Federal Reserve interest rate cut, which reduces the opportunity cost of holding non-yielding assets like gold.
Conclusion
In conclusion, gold prices are expected to continue rising due to a combination of factors, including expectations of an interest rate cut by the U.S. Federal Reserve, central bank purchases, and geopolitical uncertainties. As the global market sentiment remains bullish, it is likely that gold prices will reach new highs in the coming months. With expert forecasts predicting year-end targets of up to $3,700 per ounce, it will be interesting to see how the gold market evolves in the near future.
