Gold prices held flat in Dubai on Tuesday morning as investors awaited news of the US-Iran peace pact. The 24K gold price was trading at Dh520.75 per gram at the market open, down marginally from Dh521.25 at the close on Monday.Gold surged on Monday, aided by a wide drop in global bond yields and the US dollar following the recent geopolitical developments in the Middle East.
Market confidence rose as US and Iranian officials announced an interim agreement to resolve current tensions. The prospect of a formal agreement signing later this week has created a more favorable climate for gold. However, the rally’s viability will most likely be determined by the strength of the proposed deal and whether all parties continue to work toward a long-term solution,” said Tony Sage, CEO of Critical Metals.
Market investors are now looking ahead to a busy week for central banks, with policy decisions from the Bank of Japan, Reserve Bank of Australia, Federal Reserve, and Bank of England. Market players will pay particular attention to policymakers’ economic estimates and forward guidance for signals on the future course of interest rates. “Any indication of a less restrictive monetary policy outlook could provide additional support for gold,” said Sage.
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