Gold prices in Dubai rose by Dh1 per gram early on Friday, following a sharp decline of over Dh7 per gram on Thursday.
According to the Dubai Jewellery Group, the 24K variant of gold was trading at Dh287 per gram on Friday morning, up from Dh286 per gram at Thursday’s market close. On Thursday, 24K gold had dropped by Dh7.25 per gram as global prices fell due to profit-taking by investors. Other variants, including 22K, 21K, and 18K, were trading at Dh265.75, Dh257.25, and Dh220.5 per gram, respectively.
Globally, spot gold was trading at $2,373.84 per ounce at 9:55 am UAE time, marking a 0.43 per cent increase. Earlier on Friday, the price had dipped below $2,370.
Mazen Salhab, Chief Market Strategist for MENA at BDSwiss, explained that gold prices hit their lowest in two weeks on Thursday after a brief rebound over the previous two sessions.
“Gold declined on Thursday as market participants remain cautious ahead of key US economic data, which will likely provide insights into the Federal Reserve’s potential rate cuts this year,” he said. Salhab noted that investors are particularly focused on the June PCE price index report set for release on Friday.
“Due to the uncertainty, traders might avoid aggressive bets and wait for more clarity on the Fed’s policy direction. Expectations of the Federal Reserve starting its rate-cutting cycle in September have kept the US dollar subdued, staying below a recent two-week high. A risk-off sentiment in global equity markets, which usually benefits safe-haven assets like gold, could temporarily support gold prices. Over the longer term, gold could see support from expectations of rising demand in India, continuing geopolitical tensions, and concerns about an economic slowdown,” added Salhab.
