UAE: Gold prices slip in early trade on first day of the week

The prices of the yellow metals slipped but still trade above Dh300 per gram

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Published: Mon 26 Aug 2024, 9:28 AM

Gold prices in the UAE slipped at the opening of the markets on the first day of the week, but are still trading above Dh300 per gram.

The Dubai Jewellery Group data showed 24K variant of the yellow metal was trading at Dh304.0 per gram at 9am UAE time compared to Dh304.25 per gram at the close of the markets on the weekend. Among the other variants, 22K, 21K and 18K were trading at Dh281.25, Dh272.5 and Dh233.5 per gram, respectively.

Globally, spot gold was trading at $2,510.32 an ounce, down 0.22 per cent at 9.10am UAE time.

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Samer Hasn, senior market analyst at XS.com, said gold gained last week after US Federal Reserve chair Jerome Powell's speech in Jackson Hole with bets on more soft signals from the Fed about cutting interest rates this year.

Markets were also watching what would come out of the ceasefire negotiations in Gaza in light of the prevailing negativity surrounding them.

“I believe that Powell’s speech about the coming period will not go beyond next September – the expected date for the start of the interest rate cut path. However, markets are already betting on this date and have already priced in based on that, especially the hypothesis of a 25-basis point cut and do not expect the possibility of hold rates at all. Therefore, Powell must come up with words that reinforce this bet, otherwise the lukewarm tone may have negative results for gold,” he said.

Markets were pricing in a 74.5 per cent chance of a 25-basis point cut in September, versus a 26.5 per cent chance of a half-point cut and a full-point cut by the end of the year, according to the CME FedWatch Tool.

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