Dubai: Gold prices slightly rise in early trade

'Investors are eagerly anticipating the release of US Consumer Price Index data on Thursday', one analyst said

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by

Waheed Abbas

Published: Tue 8 Oct 2024, 9:35 AM

Gold prices inched higher in Dubai in early trade on Tuesday morning, after losing Dh1.5 per gram since the close of the market last week.

At 9am UAE time, the 24K variant was trading at Dh320 per gram, up from Dh319.75 per gram at the close of the markets on Monday. Among the other variants, 22K opened at Dh296.25, 21K at Dh286.75 and 18K at Dh245.75 per gram.

Spot gold was steady at $2,643.19 per ounce at 9.15am UAE time.

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Vijay Valecha, chief investment officer, Century Financial, said gold prices experienced a dip due to robust NonFarm Payrolls (NFP) data in the US last week.

“On Friday, Strong US labour market data tempered expectations for aggressive policy easing by the Federal Reserve, which would’ve been positive for the yellow metal. The US economy added an impressive 254,000 jobs in September, far exceeding the forecast of 170,000, while the unemployment rate unexpectedly fell to 4.1 per cent, highlighting the strength of the labour market,” said Valecha.

The CME Group’s FedWatch Tool indicates a 93.1 per cent probability that the Fed will implement a 25-basis point rate cut at its next meeting.

“Investors are eagerly anticipating the release of the US Consumer Price Index (CPI) data on Thursday. Any indications of persistent inflation could create opportunities for gold, as a prolonged higher interest rate environment may lead to renewed interest in gold,” he said.

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Waheed Abbas

Published: Tue 8 Oct 2024, 9:35 AM

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