Gold prices in Dubai experienced a slight dip at the start of trading on Tuesday. According to the Dubai Jewellery Group, the price of 24K gold was Dh286.75 per gram in early trade, down from Dh287.50 at the close on Monday.
Other gold variants also saw declines, with 22K trading at Dh265.5, 21K at Dh257, and 18K at Dh220.25 per gram.
On the global front, gold was trading at $2,365.1 per ounce, marking a 0.14 percent increase. The drop in gold prices, according to George Khoury, global head of education and research at CFI, is the result of traders protecting their gains following last week’s spike.
He pointed out that lower-than-expected US economic data, such as a slowdown in wage growth and an increase in unemployment to 4.1 percent, had kept gold close to its one-month peak.
Khoury highlighted that expectations of a potential rate cut by the Federal Reserve in September could continue to support gold prices. This week’s highlights for the market include remarks from Fed officials, the semi-annual testimony before Congress by Federal Reserve Chair Jerome Powell, and upcoming inflation data from the United States.
The release of fresh data could significantly influence rate cut expectations, and dovish statements and data will likely give gold more backing.
Furthermore, Khoury noted that the uncertainty surrounding the US presidential election and the ongoing political unrest in Europe in the wake of the French election results could support gold as a safe-haven asset in the medium term.
