The price of gold experienced a modest uptick in Dubai on the first trading day of the week, recovering from a significant drop in the previous session. The 24-karat variant saw a gain of 0.50 dirhams per gram, settling at Dh291.25. Other gold purities also opened higher.
The precious metal had plummeted by nearly Dh8 per gram on Friday, following a trend of declining prices in recent trading sessions. However, the global spot gold price was slightly down at $2,406.8 per ounce.
Chris Weston, head of research at Pepperstone, attributed potential headwinds for gold to US President Joe Biden’s decision to step down as the Democratic Party nominee. Nevertheless, Weston emphasized that the weaker dollar is currently supporting gold prices in Asian markets.
“Kamala Harris hasn’t yet secured the full nomination, and as Obama hasn’t shown a preference, it may still come down to an open contest; but I feel the prediction markets are right to have her as the big favorite to claim that position. We’re already hearing of over $50 million pledged by Democrat donors, so the news flow seems to have revitalized the Democrat’s prospects,” Weston said.
While acknowledging uncertainties that could limit gold’s downside, Weston pointed out that economic trends and their impact on interest rate expectations will be crucial factors influencing gold prices. He added that the potential of Kamala Harris securing the Democratic nomination might reduce the appeal of gold as a hedge against a potential Trump-Vance administration’s policies.
