Gold prices in Dubai experienced a slight increase at the opening of the markets on Tuesday, with rates rising by half a dirham per gram.
According to data from the Dubai Jewellery Group, 24K gold was priced at Dh290.25 per gram at 9 am UAE time, up from Dh289.75 at the close of markets on Monday. The prices for other gold variants were also adjusted, with 22K, 21K, and 18K gold trading at Dh268.75, Dh260.25, and Dh223.0 per gram, respectively.
On the global front, spot gold remained steady at $2,395.61 per ounce at 9:10 am UAE time. The increase in gold prices can be attributed to several factors, including a weaker dollar following US President Joe Biden’s announcement to withdraw from the 2024 presidential race. George Khoury, global head of education and research at CFI, explained that this decision has led investors to view gold as a safe haven amidst political uncertainty.
“This move clears the way for Kamala Harris to challenge Donald Trump, prompting investors to view bullion as a hedge against an uncertain political and market outlook. The prospect of rate cuts and ongoing political uncertainty in the United States are providing support for gold prices, setting up conditions for a potential rebound in the coming days,” Khoury said.
Khoury also highlighted that the gold market could face further volatility this week as investors await several key economic indicators. These include the US Personal Consumption Expenditures (PCE) figure on Friday, July flash PMIs, advance second-quarter GDP, and weekly jobless claims. Additionally, the slowing Chinese economy, evidenced by the People’s Bank of China’s (PBOC) interest rate cuts, may provide further support for gold prices.
The ongoing geopolitical tensions in the Middle East are also contributing to the rise in gold prices. Khoury noted that recent escalations in the region increase the risk of a broader conflict, further boosting gold’s appeal as a safe-haven asset.
As investors navigate through these uncertain times, gold continues to be seen as a reliable store of value, reflecting its resilience in the face of fluctuating economic and political landscapes.
