Gold prices saw a modest increase in early trading on Tuesday, following a Dh1.5 per gram drop in the previous session.
Data from the Dubai Jewellery Group indicated that the 24K gold variant was trading at Dh281.25 per gram, a slight rise from Dh281.0 per gram at Monday’s market close.
Other gold variants also showed stable prices, with 22K trading at Dh260.5 per gram, 21K at Dh252.0 per gram, and 18K at Dh216.0 per gram.
On a global scale, gold prices remained steady at $2,321.68 per ounce as of 9.10 am UAE time. The previous day’s decline was attributed to investor anticipation of upcoming US economic data and statements from Federal Reserve officials, seeking clarity on potential rate cuts.
Financial analyst Saqib Iqbal from Trading.biz predicted a downward trend in gold prices due to the Federal Reserve’s cautious stance. “Fed Chief J. Powell provided no hints regarding rate cuts. I expect gold prices to range between $2,250 and $2,300 in the coming month. Should we receive consistently lower CPI reports and an increase in the unemployment rate, the Fed might cut rates in September, potentially pushing gold prices above $2,400,” Iqbal noted.
Additionally, Iqbal highlighted a recent decline in demand from China, which had been a significant buyer of gold reserves for the past 18 months. “China’s gold purchases dropped in May after reaching record highs. The People’s Bank of China acquired just 60,000 troy ounces in April, compared to 390,000 ounces in February and 160,000 ounces in March. This record rise in gold prices may temporarily dampen demand,” he added.
