Gold prices in Dubai maintained their upward trend for the second straight day during early trading on Tuesday. Dubai Jewellery Group data indicates that the 24K gold rose by half a dirham per gram to reach Dh298 per gram at market opening on Tuesday. This follows a gain of Dh2.5 per gram on Monday, totaling a Dh3 increase over the past 24 hours. Other variants, including 22K, 21K, and 18K, also started higher at Dh276, Dh267.25, and Dh229 per gram respectively.
Globally, spot gold was trading at $2,459.53 per ounce, showing a 0.65% decrease. Joseph Dahrieh, managing principal at Tickmill, noted that gold is recovering from last week's sell-off and anticipates US inflation data. The upcoming Producer Price Inflation (PPI) and Consumer Price Index (CPI) are expected to influence the Federal Reserve's future actions. Dahrieh highlighted that higher-than-expected US inflation could pressure gold prices, while a decrease in inflation might support a softer monetary policy, potentially boosting gold prices. Geopolitical tensions, particularly in the Middle East, continue to bolster gold's appeal, especially with ongoing conflicts.
Chris Weston, head of research at Pepperstone, observed that gold is fluctuating between $2,480 and $2,450, with the 50-day moving average at $2,473 providing near-term support. Weston pointed out that the US CPI print and retail sales report could be significant catalysts this week. A core CPI above 0.35% could initially weigh on gold due to a stronger US dollar, while a reading below 0.2% might refocus attention on the Fed's potential rate cuts.
