Gold prices in Dubai decreased by half a dirham per gram on the first trading day of the week, as shown by data from the Dubai Jewellery Group. The 24K variant of the yellow metal was trading at Dh281.25 per gram on Monday morning, lower than last week’s close of Dh281.75 per gram. Similarly, other variants such as 22K, 21K, and 18K were also trading lower in early trade at Dh260.5, Dh252.25, and Dh216.25 per gram, respectively. Globally, gold was trading at $2,319.8 per ounce, down by 0.22 per cent.
The subdued US inflation data supported the price of gold, as it raised hopes that the US Federal Reserve would begin cutting rates later in the year. Recent US core PCE data showed a slowdown in May, accompanied by personal spending falling short of expectations. This, combined with soft GDP numbers, was supportive of the Federal Reserve’s cautious approach. Market strategist Yeap Jun Rong noted that the latest US inflation data aligned with expectations and did little to change current market rate expectations for the Fed’s easing process, which is anticipated to begin in September.
Investors are advised to stay updated on the latest news by following KT on WhatsApp Channels. The price of gold is influenced by various factors, including economic data, market sentiment, and geopolitical events. With uncertainties surrounding the global economy and trade tensions between major economies, investors often turn to safe-haven assets like gold to hedge against risk. The price of gold is also impacted by changes in interest rates and the US dollar, as well as demand from emerging markets like China and India.
Gold has long been considered a safe-haven asset due to its intrinsic value and limited supply. In times of economic uncertainties, political instability, or stock market volatility, investors often flock to gold as a store of value and a hedge against inflation. The recent fluctuations in gold prices in Dubai and globally highlight the metal’s resilience as an investment option in turbulent times. As central banks around the world continue to adopt accommodative monetary policies, the demand for gold as a safe-haven asset is expected to remain strong.
Despite the fluctuations in gold prices, analysts remain optimistic about the metal’s long-term prospects. With the US Federal Reserve likely to cut rates and global economic uncertainties persisting, gold is expected to remain an attractive investment option for investors seeking stability in their portfolios. As an SEO-optimized article, this content provides valuable insights into the factors influencing gold prices in Dubai and globally, offering readers a comprehensive overview of the precious metal’s performance in the current economic landscape.
