Gold prices in the UAE fell by half a dirham per gram as the markets opened on Monday.
According to data from the Dubai Jewellery Group, 24K gold was trading at AED 285.25 per gram at 9 am on Monday, down from AED 285.75 per gram over the weekend.
Other gold variants, including 22K, 21K, and 18K, also started lower at AED 264.0, AED 255.75, and AED 219.25 per gram, respectively.
Gold prices had surged on Friday, surpassing late April levels
George Khoury, global head of education and research at CFI, stated that the market regained part of Friday’s losses, driven by renewed optimism for potential Federal Reserve interest rate cuts.
While the Federal Reserve remains cautious about rate cuts, markets anticipate the first cut in September. If the data indicates a downward trend in inflation, it could increase gold’s attractiveness as an investment.
Khoury noted that geopolitical risks could continue to support gold’s performance, although rapidly changing conditions in the Middle East pose a risk. Additionally, recent ETF data underscores robust demand for gold in Asian markets, especially China, while central banks maintain an interest in the precious metal.
