Gold prices in Dubai have continued their upward trend, opening higher on Tuesday.
At 9 am UAE time, the price of 24K gold rose by more than Dh1 to reach Dh294.0 per gram, marking an increase of Dh1.25 per gram since the previous day. Over the past 24 hours, gold prices in Dubai have risen by Dh2 per gram.
In addition to 24K gold, other variants also saw price increases:
- 22K gold opened at Dh272.25 per gram.
- 21K gold was priced at Dh263.5 per gram.
- 18K gold was available for Dh226.0 per gram
Globally, gold was trading at $2,429.16 per ounce, up 0.28%. The rise in gold prices has been largely influenced by expectations of a US interest rate cut.
Despite significant news such as the assassination attempt on US presidential candidate Donald Trump, gold prices remained unaffected.
Richard Snow, a strategist at DailyFX, explained that the lower US inflation data has been a key factor in driving gold prices higher. “Gold is benefiting from the low-interest-rate environment and the anticipation of a US Federal Reserve rate cut,” he said.
Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, noted that recent CPI reports showing slower-than-expected inflation figures have bolstered expectations for a Fed rate cut. “Investors are suggesting that inflation is on track to justify a rate cut sooner rather than later,” Ozkardeskaya said. The probability of a September rate cut has soared to 95%, according to activity on Fed funds futures.
