Gold prices in Dubai opened higher on Thursday morning after briefly slipping below Dh300 per gram level on Wednesday. At 9am UAE time, the 24K variant of the yellow metal was trading at Dh302.0 per gram at the opening of the markets on Thursday, up from Dh300.75 at the close of the markets. The yellow metal fell below the psychological barrier of Dh300 per gram briefly on Wednesday evening as it came under pressure. Among the other variants, 22K, 21K, and 18K were trading at Dh279.75, Dh270.75, and Dh232.0 per gram, respectively. Globally, gold was trading at $2,494.44 per ounce, down 0.06 per cent.
Joseph Dahrieh, managing principal at Tickmill, said gold prices were under pressure and traders could remain cautious as they wait for additional economic data this week as the Federal Reserve meeting comes closer. “Although expectations remain focused on the start of interest rate cuts, the size of the cuts could remain uncertain. Weaker-than-expected manufacturing PMI data has supported to a certain extent the probability of a larger interest rate cut at the next Federal Reserve meeting. Gold could find more support if upcoming economic data drive expectations for a larger cut in September higher,” he said. Market participants are now focused on the job report which will be out later this week. The NFP (nonfarm payrolls) report will provide insights into the labor market’s performance. Meanwhile, central banks have continued to accumulate gold in recent months, which could help keep gold at high valuations.
Tickmill’s managing principal sees a continuation in the stock market selloff, which could also drive investors toward safe haven assets and could benefit gold. Gold prices are influenced by various factors such as economic data, geopolitical tensions, and central bank policies. As uncertainty in the global economy continues, investors tend to flock towards safe haven assets like gold. The upcoming Federal Reserve meeting will be closely watched for any signals regarding interest rate cuts, which could impact gold prices significantly. The job report and other economic indicators will also play a crucial role in determining the future direction of gold prices.
In Dubai, gold prices have shown resilience despite brief fluctuations below the Dh300 per gram level. The 24K variant remains above the Dh300 mark, indicating some stability in the market. Investors are closely monitoring global gold prices as they try to assess the impact of economic data on future price movements. Gold has traditionally been a safe haven asset during times of uncertainty, and recent trends suggest that investors are turning to gold as a hedge against economic risks. Central banks’ continued accumulation of gold further supports the notion that the yellow metal is still considered a valuable asset in times of market volatility.
As the stock market experiences a selloff, investors are looking for safe assets to protect their portfolios. Gold, with its status as a safe haven asset, is likely to benefit from the current market conditions. Gold prices are expected to remain volatile as economic data and central bank policies play a significant role in shaping market sentiment. The upcoming job report and Federal Reserve meeting are crucial events that could impact gold prices in the coming weeks. Investors are advised to stay informed about market developments and monitor economic indicators to make informed decisions about their gold investments.
In conclusion, the fluctuations in gold prices in Dubai and globally are influenced by a variety of factors such as economic data, central bank policies, and market sentiment. Investors are keeping a close eye on developments in the global economy and upcoming events that could impact gold prices. Gold’s status as a safe haven asset continues to attract investors seeking to hedge against market uncertainties. As the stock market experiences volatility, gold prices are expected to remain steady or even increase as investors seek refuge in safe assets. Stay updated with the latest news and market trends to make informed decisions about your gold investments in the current economic environment.
