emirates7 - Gold prices continued their upward trend on the first trading day of the week, reaching a new record high in Dubai. The price of 24K gold rose by Dh1 to Dh318.50 per gram in early trading, marking a gain of over Dh16 per gram for the month of September.

Other gold variants also saw record prices, with 22K reaching Dh294.75, 21K at Dh285.50, and 18K at Dh244.50 per gram as of 9 a.m.

Globally, gold has been trading above $2,600 per ounce since last week, following a 50 basis point interest rate cut by the U.S. Federal Reserve. By 9:15 a.m., gold was priced at $2,627.86 per ounce, up 0.29%.

The surge in gold prices has been fueled by the Fed’s rate cut and rising geopolitical tensions in the Middle East. Michael Brown, a senior research strategist at Pepperstone, noted that the market is still digesting the Fed’s substantial rate reduction, while end-of-month and quarter flows are also influencing the market.

Brown highlighted that the Fed’s "jumbo" 50 bps rate cut, which reduced the fed funds rate to a range of 4.75-5.00%, was unexpected but aligned with market pricing. He also pointed to escalating tensions between Israel and Hezbollah, including recent incidents involving the detonation of pagers and walkie-talkies used by Hezbollah members in Lebanon, which have further supported the rise in gold prices.