Gold prices in Dubai experienced an uptick at the market opening on Thursday, climbing by Dh2.5 per gram on Wednesday to reach nearly a two-week high.
As of 9am UAE time on Thursday, the price of 24K gold was Dh285.5 per gram, a slight increase of Dh0.25 from the previous day’s close. On Wednesday, it saw a significant rise of nearly Dh2.5 per gram. Other gold variants also saw price changes, with 22K trading at Dh264.25, 21K at Dh256, and 18K at Dh219.25 per gram. Globally, gold remained steady at $2,357.89 per ounce at 9.10am UAE time.
Market Insights and Influences
Rania Gule, a market analyst at XS.com, noted that the downside for gold prices remains limited due to the impact of US Treasury yields influenced by Federal Reserve Chairman Jerome Powell’s recent comments at the ECB Forum on Central Banking in Sintra.
The benchmark 10-year US Treasury yield dropped to 4.43 percent following a streak of significant daily gains earlier in the week. Despite positive inflation data indicating a deflationary trend, Powell emphasized the need for more evidence before considering rate cuts. “As a result, markets slightly increased their expectations for a rate cut in September after Powell acknowledged progress in reducing inflation, taking his comments as a signal for upcoming monetary easing. Currently, markets see a 67 percent chance of a Fed rate cut in September, slightly up from around 63 percent before Powell’s remarks,” Gule explained.
She added, “From my perspective, renewed dovish Fed expectations may continue to support gold demand, as the latest World Gold Council report showed central banks buying 10 tons of gold in May. The report mentioned that the National Bank of Poland was the largest gold buyer in May, adding 10 tons to its reserves.”
