Market attention now turns to upcoming US inflation reports, which could be crucial in shaping the Federal Reserve's monetary policy decisions
KT Photo: File
The prices of 22K gold crossed the Dh300 mark again as global prices rose to $2,680 per ounce.
At the opening of the markets in Dubai on Wednesday, 24K opened at Dh327.25 per gram while 22K was selling at Dh303.
The 24K variant has gained Dh8.75 per gram while 22K jumped Dh7.50 per gram this week so far.
The 22K crossed Dh300 per gram a few months ago when gold prices went past $2,700 per ounce globally.
Among the other variants, 21K and 18K were trading at Dh293.50 and Dh251.50 per gram, respectively.
[Editor's Note: For real-time gold rates, click on the widget below or visit KT's dedicated Trading News page.]
Globally, gold was trading at $2,680.55 per gram, down 0.5 per cent.
Terence Hove, financial markets strategist consultant to Exness, said gold reacted to the expected developments in China's economic policy.
“The Chinese Politburo's announcement of a more accommodative policy has fuelled a more positive sentiment among investors and could support risk-taking, which could weigh on gold to a certain extent. However, China's central bank gold purchases restart could help in supporting the market after a volatile period,” said Hove.
Market attention now turns to upcoming US inflation reports, which could be crucial in shaping the Federal Reserve's monetary policy decisions. This follows last week's stronger-than-expected employment data, which has increased the probability of a Federal Reserve rate cut at the next meeting. Meanwhile, the European Central Bank is anticipated to implement a quarter-point rate reduction at its Thursday policy meeting, potentially further supporting gold prices.
“Gold’s appeal could also continue to strengthen amid geopolitical tensions in the Middle East and Europe. Coupled with growing concerns over US trade tariffs and potential international trade conflicts, these factors could contribute to increased demand for the safe-haven asset,” added Hove.
ALSO READ:
Waheed Abbas is Assistant Editor, covering real estate, aviation and other business stories that directly affect the lives of UAE consumers. He frequently reports human interest stories, too.