Gold prices in Dubai saw a slight increase of Dh1 per gram on Friday morning, following a significant decline on Thursday.
According to the Dubai Jewellery Group, the price of 24K gold rose to Dh287 per gram, up from Dh286 at the previous day’s close. This increase came after a sharp drop of Dh7.25 per gram on Thursday, attributed to global profit-taking by investors.
Other gold variants also saw adjustments, with 22K trading at Dh265.75 per gram, 21K at Dh257.25 per gram, and 18K at Dh220.5 per gram.
On the global stage, spot gold was trading at $2,373.84 per ounce at 9:55 am UAE time, marking a 0.43 percent rise after briefly dipping below $2,370 earlier in the day.
Mazen Salhab, chief market strategist for Mena at BDSwiss, noted that gold prices hit a two-week low on Thursday despite attempts at a rebound in previous sessions.
“Gold declined on Thursday as market participants remain cautious ahead of key US economic data, which will likely provide insights into the Federal Reserve’s potential rate cuts this year,” Salhab explained. He highlighted the upcoming June PCE price index report, set for release on Friday, as a key factor influencing market sentiment.
Salhab added that due to the prevailing uncertainty, traders might avoid making aggressive bets, awaiting more clarity on the Federal Reserve’s policy direction. He pointed out that expectations of the Federal Reserve starting its rate-cutting cycle in September have kept the US dollar subdued, staying below a recent two-week high.
Additionally, a risk-off sentiment in global equity markets, which typically benefits safe-haven assets like gold, could temporarily support gold prices. In the long term, gold could see continued support from rising demand in India, ongoing geopolitical tensions, and concerns about an economic slowdown.
