Gold prices in Dubai continued their upward trajectory for the second consecutive day, according to data from the Dubai Jewellery Group.
The 24K variant of gold saw a notable increase, rising by half a dirham per gram to an opening price of Dh298 per gram. This marked a continuation of the upward trend, following a rise of Dh2.5 per gram on Monday, culminating in a total gain of Dh3 per gram over the preceding 24 hours.
Similarly, other gold variants experienced a price increase. The 22K variant commenced at Dh276 per gram, the 21K at Dh267.25 per gram, and the 18K at Dh229 per gram.
On a global scale, spot gold was observed trading at $2,459.53 per ounce, experiencing a minor decline of 0.65 percent. Market analysts are diligently monitoring US inflation data, anticipating its impact on the forthcoming monetary policy decisions of the Federal Reserve.
Joseph Dahrieh, the managing principal at Tickmill, noted the recovery of gold prices from the sell-off witnessed last week, attributing this to traders’ expectations regarding the Producer Price Index (PPI) and Consumer Price Index (CPI) reports scheduled for Tuesday and Wednesday.
These reports are anticipated to shed light on the Federal Reserve’s forthcoming actions. “Should there be a higher-than-expected increase in US inflation, it could potentially pressure gold prices, especially if there are expectations of interest rate reductions.
Conversely, a decrease in inflation could bolster expectations for a more lenient monetary policy, thereby driving gold prices upward,” Dahrieh elaborated. He further emphasized that geopolitical tensions, particularly in the Middle East, continue to bolster gold’s status as a safe-haven asset.
