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Dubai: Gold prices jump Dh1 per gram in early trade

The price fell below the $2,500 level last evening but recovered in the later session

Published: Thu 29 Aug 2024, 9:36 AM

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KT Photo: Shihab

KT Photo: Shihab

Gold prices jumped Dh1 per gram in Dubai in early trade on Thursday.

According to Dubai Jewellery Group data, the 24K variant of the yellow metal was trading at Dh304.5 per gram at 9am UAE time as compared to last night’s close of Dh303.5 per gram.

Among the other variants, 22K, 21K and 18K were trading at Dh282.0, Dh273.0 and Dh234.0 per gram, respectively.

Globally, gold was trading at $2,515.45 per ounce, up 0.3 per cent. The price fell below the $2,500 level on Wednesday evening but recovered in the later session.

Milad Azar, market analyst at XTB Mena, said gold prices eased on Wednesday as investors adopted a cautious stance, awaiting fresh cues on the Federal Reserve’s imminent interest rate cut.

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“A slight recovery in the dollar is adding pressure on gold prices. Traders are currently pricing in a 63.5 per cent probability of a 25 basis point cut and a 36.5 per cent chance of a more substantial 50 basis point reduction in the anticipated September rate cut. This follows dovish statements from Fed officials, who have highlighted rising risks to the labour market while expressing confidence that inflation will return to target,” said Azar.

“Markets are looking forward to a slew of economic data this week, including the second estimate of the US Gross Domestic Product (GDP) Annualized for the second quarter (Q2) and Personal Consumption Expenditures (PCE) Price Index data, which will be published on Thursday and Friday. Gold may experience more volatility during this week as investors digest the data. Although the general macroeconomic outlook is supportive for gold prices,” said Azar.

He added that geopolitical developments in the Middle East might also continue to support gold, as further escalations in the region could increase demand for safe-haven assets such as gold.

“Overall, while the macroeconomic and geopolitical factors are supportive for gold to continue its momentum, investors are waiting for further confirmation,” said Azar.

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