Gold prices in Dubai saw a Dh1 per gram increase in early trade on Thursday, with the 24K variant trading at Dh304.5 per gram compared to Dh303.5 per gram the previous night. Other variants such as 22K, 21K, and 18K were trading at Dh282.0, Dh273.0, and Dh234.0 per gram, respectively. Globally, gold was trading at $2,515.45 per ounce, up 0.3 per cent, after falling below $2,500 on Wednesday but recovering in the later session. Market analyst Milad Azar stated that gold prices eased on Wednesday due to cautious investor sentiment awaiting cues on the Federal Reserve’s interest rate cut.
Azar highlighted that a slight recovery in the dollar is adding pressure on gold prices, with traders pricing in a 63.5 per cent probability of a 25 basis point rate cut and a 36.5 per cent chance of a 50 basis point reduction in the anticipated September rate cut. He mentioned that economic data for the week, including the second estimate of the US GDP Annualized for Q2 and the PCE Price Index data to be released on Thursday and Friday, may drive more volatility in gold prices. Despite supportive macroeconomic factors, investors are awaiting further confirmation before making significant moves in the gold market.
Geopolitical developments in the Middle East could also support gold prices, as further escalations in the region may increase the demand for safe-haven assets like gold. While macroeconomic and geopolitical factors favor gold’s momentum, investors are cautious and awaiting more confirmation before making significant decisions in the market. With uncertainties surrounding the Federal Reserve’s interest rate cut and economic data releases, gold prices may experience fluctuations throughout the week as traders react to new information and developments in the global economy.
As gold prices continue to see fluctuations influenced by various factors, it is essential for investors to stay updated on the latest news and market trends. Following gold prices and market analysis from experts can help investors make informed decisions and navigate through the volatility in the gold market. With economic data releases and geopolitical tensions impacting gold prices, investors need to be vigilant and adaptable to changing market conditions to maximize their investment strategies.
In conclusion, gold prices in Dubai surged in early trade on Thursday, reflecting global trends and market sentiments. As investors await cues on the Federal Reserve’s interest rate cut and economic data releases, gold prices may experience volatility in the coming days. With supportive macroeconomic and geopolitical factors, gold’s momentum is expected to continue, but investors are advised to exercise caution and stay informed to make well-informed decisions in the gold market. Geopolitical developments in the Middle East and global economic data will play a significant role in influencing gold prices, highlighting the importance of staying up to date with market news and expert analysis to navigate the uncertainties of the gold market.
