On Thursday morning, gold prices in Dubai saw a significant drop of more than Dh5 per gram, aligning with a global decline in the yellow metal’s value due to profit-taking activities.
At 9 am, the price of 24K gold was Dh287.75 per gram, down from Dh293.25 per gram at the previous market close on Wednesday, marking a decrease of Dh5.5 per gram. Other gold variants also experienced declines: 22K fell to Dh266.5 per gram, 21K to Dh258.0 per gram, and 18K to Dh221.0 per gram.
Globally, spot gold was down nearly one percent, trading at $2,375.2 per ounce at 9.10 am UAE time. This decline was attributed to investors booking profits ahead of crucial US economic data releases, which could influence central bank decisions on interest rates.
Eman AlAyyaf, CEO of EA Trading, commented on the market’s cautious stance, noting, “Investors could remain cautious ahead of important US economic and inflation reports due later this week. These reports are expected to impact the Federal Reserve’s policy decisions. Key data to watch include the second-quarter GDP report on Thursday and the June PCE price index on Friday. These figures could provide clues about the Fed’s future actions, with the market currently expecting rate cuts to start in September, which could support higher gold prices.”
AlAyyaf also highlighted the trend’s persistence, especially given the US dollar’s slight retreat from its peak, which could bolster gold prices. “Gold prices may also benefit from improved sentiment due to stronger anticipated demand in India. Central bank demand as well as geopolitical tensions could also remain strong drivers for gold prices,” she added.
