Gold prices in Dubai saw a decline in early trade on the first trading day of the week after experiencing strong gains last week. The 24K variant of gold was trading at Dh288.75 per gram, down from Dh289.25 at the close of the markets on the weekend. Other variants such as 22K, 21K, and 18K also opened lower at Dh267.25, Dh258.75, and Dh221.75 per gram, respectively. The global gold price remained steady at $2,384.69 per ounce during the early morning.
Chris Weston, head of research at Pepperston, mentioned that gold saw some selling in early Asia trade but after a 2.8 percent rally last week, the gold bulls needed follow-through selling in the USD to push the price above $2,400. The price pullbacks during the day are expected to be limited to $2,365. However, with Jay Powell testifying to the House on Tuesday and US core CPI on Thursday, gold traders need to navigate through some significant event risks this week.
The increase in gold prices has been primarily driven by buying in the US bond market, with US 2-year Treasury yields declining 15 basis points on the week. Weston also added that gold might receive additional support if there is evidence indicating that Republicans could surprise expectations and take the House, allowing them to extend the 2017 Tax Cut and Job Act. Additionally, Freeport McMoran cutting gold production guidance has also been a bullish factor in an already tight market.
To stay updated with the latest news and developments in the gold market, it is recommended to follow KT on WhatsApp Channels for real-time updates and insights. With the current trends and factors influencing gold prices, investors and traders should monitor key events like Jay Powell’s testimony and US core CPI data release to make informed decisions regarding their gold investments. With various factors at play, including political outcomes and production guidance changes, the gold market is expected to remain dynamic in the coming days.
Despite the recent drop in gold prices, the market remains sensitive to various geopolitical and economic developments that can influence the direction of gold prices. Investors should remain cautious and informed about the ongoing trends and factors affecting the gold market to make strategic investment decisions. As the week progresses, it will be essential to monitor price movements and upcoming events that could potentially impact gold prices, such as economic data releases and political developments. By staying informed and vigilant, investors can navigate the gold market effectively and seize opportunities for profitable investments.
