Gold prices in Dubai fell by Dh1 per gram on Wednesday morning, as the precious metal experienced a global decline due to a stronger US dollar. The 24K variant was trading at Dh280.5 per gram, with other variants such as 22K, 21K, and 18K also experiencing lower prices. Globally, gold was down 0.14 per cent at $2,317.03 per ounce at 9.17 am UAE time. George Khoury, global head of education and research at CFI, highlighted that gold prices have stagnated as investors await crucial US inflation data later in the week, which could impact the Federal Reserve’s approach to interest rate adjustments.
The upcoming data to watch for includes the US core Personal Consumption Expenditures (PCE) index, consumer spending and income metrics, Q1 GDP growth, and the goods trade balance. San Francisco Fed Bank President Mary Daly recently emphasized that the US central bank should not consider lowering rates until it is clear that inflation is consistently moving towards the 2 per cent target. Additionally, more speeches are expected throughout the week from figures such as Fed Governors Lisa Cook and Michelle Bowman, which could provide further insights into future monetary policy and impact market sentiment.
Investors are closely monitoring the upcoming elections in France and the United Kingdom, with polls suggesting a possible shift towards the far right in France. Moreover, escalating tensions in the Middle East and the ongoing conflict between Russia and Ukraine could increase market uncertainty, potentially boosting gold prices as investors seek stability. Khoury emphasized the importance of these geopolitical factors in influencing market sentiment and gold prices. Stay updated with the latest news by following KT on WhatsApp Channels for timely updates on market trends and developments in the gold industry.
In conclusion, the slight decrease in gold prices in Dubai reflects the global trend of a decline in precious metal prices due to a stronger US dollar. Investors are eagerly awaiting key US inflation data later in the week to gain insights into the Federal Reserve’s approach to interest rate adjustments. Market uncertainties stemming from geopolitical events such as upcoming elections and escalating tensions in various regions could further impact gold prices in the coming days. Stay informed and proactive in your investment decisions by staying updated on market trends and developments in the gold industry.
