After dropping more than Dh7 per gramme on Thursday, gold prices in Dubai increased by Dh1 early on Friday morning.
According to data from the Dubai Jewellery Group, 24K traded at Dh287 per gramme on Friday morning, down from Dh286.0 at Thursday’s market close. On Thursday, it lost Dh7.25 per gramme as global prices dropped due to investors taking profits.
The prices per gramme for the other variations—22K, 21K, and 18K—were Dh265.75, Dh257.25, and Dh220.5, respectively.
Gold prices, which had attempted a recovery over the previous two sessions, fell to their lowest point in two weeks on Thursday, according to Mazen Salhab, chief market strategist for Mena in BDSwiss.
He added that investors are focussing on the June PCE price index report, which is scheduled for release on Friday. “Gold declined (on Thursday) as market participants remain cautious ahead of key US economic data, which will likely give insights into the Federal Reserve’s potential rate cuts this year,” the speaker stated.
Because of this uncertainty, traders may choose to hold off on placing large bets to gain more clarity on the Fed’s policy direction. The US dollar has remained weak, continuing to trade below a recent two-week high, due to expectations that the Federal Reserve will begin its cycle of rate cuts in September. The temporary support of gold prices could come from a risk-off sentiment in global equity markets, favouring safe-haven assets like gold.
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