Gold prices in Dubai saw a slight increase as markets opened on Tuesday, with a rise of half a dirham per gram.
Data from the Dubai Jewellery Group indicated that at 9 am UAE time on Tuesday, 24K gold was priced at Dh290.25 per gram, compared to Dh289.75 at the close of markets on Monday. Other gold variants also saw similar trends, with 22K, 21K, and 18K gold trading at Dh268.75, Dh260.25, and Dh223.0 per gram, respectively.
Globally, spot gold remained stable at $2,395.61 per ounce as of 9.10 am UAE time.
George Khoury, global head of education and research at CFI, noted that gold has gained from a weaker dollar following US President Joe Biden’s decision not to run in the 2024 presidential race. “This move clears the way for Kamala Harris to challenge Donald Trump, prompting investors to view bullion as a hedge against an uncertain political and market outlook. The prospect of rate cuts and ongoing political uncertainty in the United States are providing support for gold prices, setting up conditions for a potential rebound in the coming day,” he said.
Khoury added, “This week, the gold market could face further volatility as investors anticipate several important economic indicators, including the US Personal Consumption Expenditures (PCE) figure on Friday, July flash PMIs, advance second-quarter GDP, and weekly jobless claims. Additional support for gold may also come from the slowing Chinese economy, as evidenced by the People’s Bank of China’s (PBOC) interest rate cuts.”
Khoury also highlighted that geopolitical tensions in the Middle East are contributing to the rise in gold prices. Recent escalations have raised the risk of broader conflict, further supporting the precious metal’s appreciation.
