Gold prices in the UAE decreased at the start of the markets on Monday, however, they are still above Dh300 per gram.
According to Dubai Jewellery Group information, the 24K type of gold was priced at Dh304.0 per gram at 9am UAE time, slightly lower than the Dh304.25 per gram price at market close on the weekend. The prices of other variations, such as 22K, 21K, and 18K, were Dh281.25, Dh272.5, and Dh233.5 per gram, respectively.
Internationally, the price of spot gold was $2,510.32 per ounce, a decrease of 0.22 percent at 9.10am in the UAE.
Gold saw an increase last week following US Federal Reserve chair Jerome Powell’s speech at Jackson Hole, as analysts predicted more indications from the Fed about potential interest rate cuts this year, according to Samer Hasn, senior market analyst at XS.com.
The ceasefire negotiations in Gaza were being closely monitored by markets due to the prevailing negativity surrounding them.
I think Powell’s speech on the upcoming period will not extend past next September, which is the anticipated start date for the interest rate reduction. Nevertheless, markets have already factored in this date and are currently anticipating a 25-basis point reduction, with no expectations of rates remaining unchanged. He said Powell must find words that support this bet, or else the neutral tone could harm gold.
According to the CME FedWatch Tool, there was a 74.5 per cent probability of a 25-basis point cut in September, compared to a 26.5 per cent chance of a half-point cut and a full-point cut by year-end as per market pricing.
