Dubai: Gold prices steady in early trade on Tuesday

Precious metal rates eased on Monday but remained near last week's record highs

Waheed Abbas

Published: Tue 1 Oct 2024, 9:21 AM

Last updated: Tue 1 Oct 2024, 9:22 AM

Gold prices were steady at the opening of the markets in Dubai on Tuesday after losing Dh2 per gram on Monday.

At 9am UAE time, the 24K variant of the yellow was trading at Dh319.5 per gram. Among the other variants, 22K opened at Dh296.0, 21K at Dh286.5 and 18K at Dh245.5 per gram. Globally, spot gold was trading at $2,639.79 per ounce, up 0.17 per cent at 9.05 am UAE time.

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Analysts said profit-taking place this week after a rally in gold prices, which reached an all-time high last week. Gold prices eased on Monday but remained near last week’s record highs.

“Gold’s rally has been driven by safe-haven demand, fuelled by rising geopolitical tensions in the Middle East, the Federal Reserve’s recent interest rate cut, and concerns about the economy. Gold prices could continue to benefit from market expectations of another 50-basis-point rate cut this year,” said Tito Iakopa, commercial director at FlowCommunity.

He said this week’s focus is on the non-farm payrolls report, which may provide additional insight into the US labour market.

“Fed Chair Jerome Powell and Governor Michelle Bowman are also scheduled to speak later today, which could trigger volatility in gold prices. If Powell hints at further monetary easing, the dollar could weaken, thereby providing further support for gold. Meanwhile, geopolitical tensions in the Middle East continue to drive demand for safe-haven assets like gold, as investors seek protection from risks, providing additional support to the precious metal prices,” he added.

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