On the first trading day of the week, gold prices in Dubai experienced a slight decline. Data from the Dubai Jewellery Group revealed that the price of 24K gold dropped by half a dirham per gram, settling at Dh281.25 per gram on Monday morning, down from Dh281.75 per gram at the close of the previous week.
Other gold variants also saw a decrease in early trading. As of 9am UAE time, 22K gold was trading at Dh260.5 per gram, 21K at Dh252.25 per gram, and 18K at Dh216.25 per gram.
Globally, the price of gold was $2,319.8 per ounce, marking a 0.22 percent decrease. The decline in gold prices was influenced by the subdued US inflation data, which has raised hopes that the US Federal Reserve might begin cutting interest rates later this year.
The US core Personal Consumption Expenditures (PCE) index, released on Friday, showed a slower rate of increase in May as personal spending fell short of expectations. Along with Thursday’s soft GDP numbers, last week’s data supported the stance of the Federal Reserve doves, who advocate for more accommodative monetary policy.
“The latest US inflation data remain fresh on investors’ minds, with the data coming in line with consensus, and generally did little to sway current market rate expectations for the Fed’s easing process to kick-start in September,” said Yeap Jun Rong, a market strategist at IG.
