Dubai: Gold prices inch higher in early trade

Gold prices inched higher at the opening of the markers in Dubai on Thursday.

At 9am, UAE time, 24K gold rose half a dirham to Dh316.50 per gram. The other variants, 22K, 21K and 18K, opened at Dh293, Dh283.75, and Dh243.25 per gram, respectively.

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Spot gold was trading higher at $2,614.15 per ounce, up 0.22 per cent at 9.10am, UAE time.

[Editor's Note: For real-time gold rates, click on the widget below or visit KT's dedicated Trading News page here.]

The precious metal rose by over a quarter this year, supported by haven demand from geopolitical tensions, robust central bank purchases, and rate-cut optimism. After reaching an all-time high a few weeks earlier, the yellow metal has been under pressure, losing Dh4 per gram in a day on Tuesday.

Vijay Valecha, chief investment officer at Century Financial, said gold was trading lower as the greenback rallied in recent days amidst expectations of a more moderate pace of policy easing by the US Federal Reserve.

“The markets are now expecting 50 bps of rate cuts in 2024, down from 75 bps just two weeks ago. There is an 87-per-cent chance of a 25-bps rate cut in November after the recent blockbuster NFP (NonFarm Payrolls) report alleviated concerns of a weakening labour market. As a result, the US dollar is exhibiting its longest winning streak since April 2022, rendering the precious metal more expensive for holders of other currencies,” said Valecha.

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