When the markets opened in Dubai on Saturday, the price of gold dropped by half a dirham.
According to data from the Dubai Jewellery Group, the 24K version of the yellow metal was trading at Dh281.75 per gram as of last night’s close. The opening prices of the other yellow metal variations were Dh260.75 for 22K, Dh252.5 for 21K, and Dh216.5 for 18K per gram.
According to George Pavel, general manager of Capex.com Middle East, the Federal Reserve’s policy of keeping interest rates high for an extended period of time has kept US Treasury bond yields high and the US dollar strong, which has weighed on gold during the last few weeks.
“The markets continue to see a start in rate cuts as early as September, followed by another in December, despite the Fed’s indication of only one rate cut in 2024. Should cuts come to pass, gold may gain additional backing. But the ambiguity might keep causing some volatility, he added.
The US presidential debate on Thursday and the US Personal Consumption Expenditures (PCE) Price Index release on Friday also caused traders to exercise caution.
Political unpredictability and ongoing geopolitical tensions sustain gold’s standing as a safe-haven asset. Pavel said future elections in the US, the UK, and France will probably increase risk aversion, which could help gold prices.
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