Gold prices declined at the opening of the markets in Dubai on Tuesday.
Market Performance
Data from the Dubai Jewellery Group indicated that 24K gold was trading at Dh286.75 per gram in early trade, down from Dh287.50 at Monday’s close. Other gold variants also saw a decrease, with 22K at Dh265.5, 21K at Dh257, and 18K at Dh220.25 per gram. Globally, gold was trading at $2,365.1 per ounce, an increase of 0.14 percent.
George Khoury, global head of education and research at CFI, commented on the market movement: “After a surge last week, gold prices retreated as traders moved to secure their gains. However, gold has held near its one-month peak driven by weaker-than-expected US economic data. The Non-Farm Payrolls (NFP) Report revealed slowing wage growth in the US, while the world’s largest economy also saw unemployment rise to 4.1 percent, indicating a weakening labor market. At the same time, strong expectations of a potential rate cut by the Federal Reserve in September could continue to support gold prices.”
Focus on Federal Reserve
This week, market attention is on Federal Reserve Chair Jerome Powell’s semi-annual Congressional testimony, remarks from various Fed officials, and upcoming US inflation data. New data could be crucial in shaping rate cut expectations, as dovish data and comments could provide additional support for gold.
“Additionally, ongoing political risks in Europe after the election results in France and uncertainty regarding the presidential election in the US could potentially bolster gold as a safe-haven asset in the medium term,” Khoury added.
