The price of gold edged up by Dh2 per gram during the early trading session in the UAE on Wednesday. This minor rise comes after the yellow metal had dipped to around Dh300 per gram by Tuesday evening, reflecting its current narrow trading range as investors keep a close eye on upcoming key economic data releases.
As of 9:00 AM UAE time on Wednesday, the 24K gold variant saw a slight uptick to Dh302.25 per gram, an increase from the previous night’s closing price of Dh300.25 per gram. Other gold variants also opened higher, with 22K, 21K, and 18K priced at Dh279.75, Dh270.75, and Dh232.25 per gram, respectively. On a global scale, gold was trading at $2,496.12 per ounce, marking a 0.13 percent increase by 9:07 AM UAE time.
Experts suggest that this modest increase reflects a market in wait-and-see mode, as traders anticipate the release of crucial economic data that could significantly impact global markets.
This period of relative stability is expected to continue until more concrete information is available, which will likely dictate the next major move in gold prices.
Tito Iakopa, Commercial Director at FlowCommunity, commented on the situation, noting that gold prices are currently fluctuating within a narrow range with only minimal gains, largely due to investors awaiting the release of significant economic data later this week.
“Geopolitical tensions, central bank demand, and concerns about further economic challenges in China, in addition to the forthcoming US elections, could bolster gold prices,” Iakopa explained. “Furthermore, traders are exercising caution ahead of the US labor market data release scheduled for Friday, which is expected to have a substantial impact on market sentiment and the Federal Reserve’s interest rate decision this month.”
He further added, “Market speculation currently favors a 25 basis point rate cut rather than a more aggressive 50 basis point cut, which will be a key determinant for gold’s next movement.”
