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Dubai: Gold prices steady in early trade on first trading day of the week

Geopolitical tensions across various global regions increase safe-haven demand

Published: Mon 9 Dec 2024, 10:29 AM

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Gold prices were steady at the opening of the Dubai markets on Monday, the first trading day of the week.

According to Dubai Jewellery Group data, the 24K variant inched higher to Dh319.25 per gram on Monday morning, compared to Dh319.0 per gram at the close of the markets last week. Among the other variants, 22K was steady at Dh295.5 per gram, while 21K and 18K slightly opened higher at Dh286.25 and Dh245.25 per gram, respectively.

Spot gold was trading at $2,638.94 per ounce, up 0.22 per cent.

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Ruben Ferreira, head of Portuguese operations at FlowCommunity, said gold has remained within a range since last week as investors adopted a cautious approach ahead of the US nonfarm payrolls report.

Regarding interest rate cuts, markets are currently pricing in a 68.5 per cent probability of a 25-basis-point cut.

“Recent comments from key FOMC members, including Federal Reserve Chair Jerome Powell, suggest that while rate cuts are anticipated, the central bank remains cautious about their timing. This, along with concerns over potential inflationary pressures from Trump’s proposed tax and tariff policies, could result in elevated interest rates for an extended period, which may weigh on gold. However, several factors continue to support gold’s stability,” said Ferreira.

“Geopolitical tensions across various global regions increase safe-haven demand, and concerns about the potential impact of proposed trade tariffs on global economic growth sustain interest in safe-haven assets, as heightened trade war risks reduce appetite for riskier investments,” added Ferreira.

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