In the early hours of Tuesday, gold prices in Dubai saw another increase, with the price per gram rising by more than Dh1 to Dh294.0.
At 9 am UAE time, the 24K variant of gold in the UAE surged by Dh1.25 per gram to Dh294.0. Over the past 24 hours, the price of gold in Dubai has increased by Dh2 per gram. The other variants, 22K, 21K, and 18K, opened at Dh272.25, Dh263.5, and Dh226.0 per gram, respectively. Globally, the price of gold stood at $2,429.16 per ounce, reflecting a 0.28% rise.
The upward movement in gold prices has been largely influenced by expectations of a US interest rate cut and has shown little reaction to the news of an assassination attempt on US presidential candidate Donald Trump.
Richard Snow, a strategist at dailyFX, explained that the increase in gold prices was supported by lower US inflation data, noting that “the path of least resistance is to the upside.”
He further commented that gold prices are flourishing in a low interest rate environment, and the mere anticipation of a rate cut from the US Federal Reserve is driving prices higher.
Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, added that investors believe the latest CPI report, which showed slower-than-expected figures for both headline and core inflation on a monthly and yearly basis, supports the case for a Fed rate cut sooner rather than later.
“Activity on Fed funds futures showed that the probability of a September rate cut soared to 95 per cent,” he said.