UAE: Gold prices jump Dh3 per gram in early trade

Global spot price surpasses $2,400 an ounce

Waheed Abbas

Published: Wed 31 Jul 2024, 9:34 AM

Gold prices jumped Dh3 per gram in Dubai at the opening of the markets on Wednesday as global rates jumped above $2,400 per ounce.

According to Dubai Jewellery Group data, the 24K variant of the yellow metal opened at Dh293.0 per gram compared to last night’s close of Dh290.0 per gram. Among the other variants, the 22K, 21K and 18K were trading higher at Dh271.5, Dh262.75 and Dh225.25 per gram, respectively.

Globally, spot gold was trading at $2,418.36 per ounce at 9.15am, up 0.38 per cent.

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Li Xing Gan, financial markets strategist at Exness, said gold opened higher and could remain volatile as traders await more clarity on the Federal Reserve's policy direction.

“The focus is on the outcome of the FOMC meeting on Wednesday and any clues from Fed chief Jerome Powell. Markets could also remain attentive to important US economic data, including the Non-Farm Payrolls (NFP) report on Friday, which could trigger further volatility for the dollar and impact gold prices in the near term,” said Gan.

“Market bets on an imminent start of the Federal Reserve's policy easing cycle in September have kept US Treasury bond yields under pressure, which could be favourable for gold prices. Interest rate cuts could support gold over the medium to long term as traders expect several interest rate cuts this year and the next as the Federal Reserve adjusts its policy. However, gold could remain exposed to changes in demand. In Q2, demand for jewellery fell, which could weigh on gold prices in the near term, but demand from central banks remained resilient and could limit its downside,” he added.

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