Dubai's Gold Prices Drop Over The Weekend
Gold prices in Dubai experienced a slight drop of half a dirham at the market opening on Saturday. Data from the Dubai Jewellery Group revealed that 24K gold traded at Dh281.75 per gram, compared to its previous close of Dh282.25. Other gold variants also saw changes, with 22K opening at Dh260.75, 21K at Dh252.5, and 18K at Dh216.5 per gram.
In comparison to the beginning of the week, prices have only changed marginally. On a global scale, gold closed almost unchanged at $2,326.73 per ounce on Friday.
George Pavel, general manager at Capex.com Middle East, explained that the Federal Reserve's decision to maintain high interest rates for an extended period has resulted in elevated US Treasury bond yields and a strong US dollar. This has put pressure on gold prices over the past few weeks. Despite the Fed indicating only one rate cut in 2024, markets anticipate cuts as early as September and another in December.
Pavel added that if these cuts materialise, gold could find more support; however, uncertainty may continue to cause volatility. Traders are also cautious due to the upcoming US presidential debate on Thursday and the release of the US Personal Consumption Expenditures (PCE) Price Index on Friday.
"Persistent geopolitical tensions and political uncertainties continue to support gold's status as a safe-haven asset. Upcoming elections in France, the UK, and the US are likely to fuel risk aversion, potentially benefiting gold prices," Pavel concluded.
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