Dubai Gold prices surge, according to data from the Dubai Jewellery Group, the 24K variant of the yellow metal opened at Dh293.0 per gram, up from the previous night’s close of Dh290.0 per gram. Other variants also experienced increases, with 22K trading at Dh271.5, 21K at Dh262.75, and 18K at Dh225.25 per gram.
Check out: Is Gold Jewellery Losing Its Luster in the UAE?
On the global stage, spot gold was trading at $2,418.36 per ounce at 9:15 am, marking a 0.38 percent rise. Li Xing Gan, a financial markets strategist at Exness, noted that gold opened higher and could remain volatile as traders await more clarity on the Federal Reserve’s policy direction.
“The focus is on the outcome of the FOMC meeting on Wednesday and any clues from Fed chief Jerome Powell. Markets could also remain attentive to important US economic data, including the Non-Farm Payrolls (NFP) report on Friday, which could trigger further volatility for the dollar and impact Dubai Gold prices in the near term,” said Gan.
“Market bets on an imminent start of the Federal Reserve’s policy easing cycle in September have kept US Treasury bond yields under pressure, which could be favourable for gold prices. Interest rate cuts could support gold over the medium to long term as traders expect several interest rate cuts this year and the next as the Federal Reserve adjusts its policy. However, gold could remain exposed to changes in demand. In Q2, demand for jewellery fell, which could weigh on gold prices in the near term, but demand from central banks remained resilient and could limit its downside,” he added.
