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UAE: Gold prices open higher in early trade, gains Dh0.75 per gram

Globally, spot gold was steady at $2,502.01 per ounce at 9.10am local time

Published: Tue 20 Aug 2024, 9:25 AM

Updated: Tue 20 Aug 2024, 10:12 AM

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Gold prices in the UAE opened higher on Tuesday morning, with the precious metal witnessing some volatility in the previous sessions.

At 9am local time, the 24K variant of the yellow metal was trading at Dh302.75 per gram, up by Dh0.75 per gram from last night’s close. Among the other variants 22K, 21K, and 18K were trading at Dh280.25, Dh271.5, and Dh232.75 per gram, respectively.

The yellow metal traded between Dh302 and Dh303.75 per gram on Tuesday.

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Globally, spot gold was steady at $2,502.01 per ounce at 9.10am UAE time. It fell below the $2,500 level yesterday but recovered later.

Samer Hasn, senior market analyst at XS.com, said gold holds above $2,500 an ounce after touching $2,510 in the first moments of this week’s trading. Comex gold futures also touched $2,550 on Friday.

“Optimism about multiple rate cuts and anticipation of more signals from the US Federal Reserve, whether from the minutes of the last meeting or Fed chief Jerome Powell’s speech in Jackson Hole and focus on the outcomes of the Gaza ceasefire negotiations are the main drivers of gold this week,” he said.

Markets had boosted their sentiment on Friday about multiple rate cuts this year after worse-than-expected data from the housing market, which is under pressure due to very high mortgage rates. The market is likely to see a full percentage point cut this year starting in September with 25 basis points, according to the CME FedWatch Tool.

“While markets have overstated their concerns about the health of the US economy, which previously led to pricing in an emergency 50 basis point cut in September, this has become unlikely. Markets will look for further signals of the possibility of a rate cut this year from Powell’s speech or the minutes of the June FOMC meeting. The focus will be on whether the Fed is actually ready and comfortable with a September cut,” said Hasn.

“While a more hawkish tone than expected could lead to a significant correction in gold, monthly inflation continues to rise, as does core inflation,” he added.

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