Gold prices in Dubai experienced a decline on Wednesday, dropping by Dh1 per gram. This decrease aligns with the global trend observed on Tuesday, attributed to a stronger US dollar.
In the UAE, the 24K gold variant was priced at Dh280.5 per gram, a reduction from Dh281.5 per gram at the close of the markets on Tuesday.
Other gold variants also saw a decrease: 22K opened at Dh259.75 per gram, 21K at Dh251.5 per gram, and 18K at Dh215.5 per gram. Globally, gold prices fell by 0.14 per cent, trading at $2,317.03 per ounce at 9:17 am UAE time.
George Khoury, Global Head of Education and Research at CFI, noted that gold prices have stagnated as investors await significant US inflation data expected later this week. This data could influence the Federal Reserve’s approach to interest rate adjustments.
Key upcoming data includes the US core Personal Consumption Expenditures (PCE) index, consumer spending and income metrics, Q1 GDP growth, and the goods trade balance.
San Francisco Fed Bank President Mary Daly emphasized on Monday that the US central bank should not consider lowering rates until it is clear that inflation is consistently moving towards the 2 per cent target.
Further insights are anticipated throughout the week from speeches by Fed Governors Lisa Cook and Michelle Bowman, which could provide additional clues on future monetary policy and impact market sentiment.
Additionally, political developments in Europe are stirring investor concerns. Upcoming elections in France and the United Kingdom indicate a potential shift towards the far right in France. Furthermore, escalating tensions in the Middle East and the ongoing conflict between Russia and Ukraine are heightening market uncertainty, which could bolster gold prices as investors seek stability.
This series of global and local factors continues to shape the fluctuating gold market, leaving investors closely monitoring for any signs of stabilization or further shifts.
