Gold prices in the UAE saw a significant increase on Tuesday afternoon, following the global trend of rising rates. The price of 24K gold surpassed Dh295 per gram, jumping to Dh295.5 per gram during the first half of the day, marking an increase of Dh2.75 per gram. In addition to the 24K variant, other variants such as 22K, 21K, and 18K also saw a rise in prices to Dh273.75, Dh265.0, and Dh227.0 per gram, respectively. Globally, spot gold was trading at $2,433.74 an ounce, up by 0.46 percent, reaching $2,443 an ounce earlier in the day.
The increase in gold prices was attributed to various factors impacting the market. Marc Pussard, head of risk at APM Capital, mentioned that hopes for interest rate cuts from the Federal Reserve played a key role in driving up gold prices. Traders are eagerly awaiting more comments from Fed officials to determine the timing of these cuts. Wael Makarem, financial markets strategist lead at Exness, highlighted that the US inflation data suggests that the Federal Reserve may ease monetary policy, leading to a rally in gold prices. The soft June consumer price index and the expectation of a US interest rate cut in September have strengthened the demand for gold.
US political uncertainty has also influenced the market, with concerns rising after the assassination attempt on former President Donald Trump. This uncertainty, coupled with economic concerns in China due to slower-than-expected growth in the second quarter, is expected to support a positive outlook for gold in the near term. These factors, combined with the ongoing market dynamics, have created an environment where gold prices are on the rise. Attention is now focused on the upcoming release of US retail sales data, which could further impact the gold market.
As the gold market continues to evolve, investors and traders are closely monitoring global economic indicators and political developments to gauge the direction of gold prices. The current market conditions, including expectations of interest rate cuts and geopolitical uncertainties, are driving the upward trend in gold prices. Gold remains a preferred asset for investors seeking a safe haven in times of economic uncertainty and market turbulence. With the ongoing developments in the global economy and political landscape, the demand for gold is expected to remain robust, supporting its value in the market.
