Gold prices saw an uptick at the market’s opening on Tuesday following a Dh1.5 per gram decline in the previous session.
As per Dubai Jewellery Group data, the 24K variant of gold was trading at Dh281.25 per gram, a slight increase from Dh281.0 per gram at Monday’s market close. The yellow metal had fallen Dh1.5 per gram in yesterday’s session. Meanwhile, the 22K, 21K, and 18K variants were trading at Dh260.5, Dh252.0, and Dh216.0 per gram, respectively. Globally, gold was stable at $2,321.68 per ounce at 9:10 am UAE time.
On Monday, gold prices dropped as investors awaited US economic data and Federal Reserve officials’ comments for insights on the timeline for a rate cut.
Saqib Iqbal, a financial analyst at Trading.biz, indicated that gold prices are expected to decrease due to the Fed’s cautious stance.
“We observed that Fed chief J. Powell carefully avoided hinting at a rate cut. I anticipate prices to range between $2,250 and $2,300 in the upcoming month. Should we receive consistently softer CPI reports and a slight increase in the unemployment rate, it will enable the Fed to cut rates in September. Only then could gold prices exceed $2,400,” Iqbal stated.
“There is also a bearish perspective on gold. After purchasing gold reserves for 18 months, China halted its buying spree in May following gold’s record high. China’s enthusiasm for gold began to wane in April when the People’s Bank of China bought only 60,000 troy ounces, compared to 390,000 ounces in February and 160,000 ounces in March. The record-breaking rise in gold prices may temporarily reduce demand,” he added.