Gold prices in Dubai experienced a decline on the initial trading day of the week, dropping by half a dirham per gram, according to data from the Dubai Jewellery Group. Specifically, the 24K gold was trading at Dh281.25 per gram on Monday morning, a slight decrease from the previous week's closing price of Dh281.75 per gram. Similarly, other gold variants also saw a dip in early trading. By 9am UAE time, 22K, 21K, and 18K were trading at Dh260.5, Dh252.25, and Dh216.25 per gram, respectively. On a global scale, the precious metal was trading at $2,319.8 per ounce, marking a 0.22% decrease. The gold market was buoyed by the recent subdued US inflation data, which has raised expectations that the US Federal Reserve may begin to lower interest rates later this year. The US core PCE, released on Friday, decelerated as anticipated in May due to personal spending falling below expectations. This, coupled with the softer GDP figures reported on Thursday, supported the dovish stance of the Federal Reserve. "The latest US inflation data is still fresh in investors' minds, with the figures aligning with market consensus and having little impact on current expectations for the Fed's easing process, which is anticipated to commence in September," commented Yeap Jun Rong, a market strategist at IG.
Text: Lara Palmer
01.07.2024
Subdued US Inflation Data Supports Gold Market, Raising Expectations for Fed Rate Cuts