Gold prices in Dubai maintained their upward trajectory at the start of trading on Tuesday, climbing over Dh1 to reach Dh294.0 per gram. Within the UAE, the 24K version of gold surged by Dh1.25 per gram to Dh294.0 at 9am UAE time on the same day. Over the last 24 hours, gold prices in Dubai have increased by Dh2 per gram. Among the different karats, 22K, 21K, and 18K opened at Dh272.25, Dh263.5, and Dh226.0 per gram, respectively. Internationally, gold was trading at $2,429.16 per ounce, marking a 0.28% increase.
Gold's rise has been largely influenced by expectations of a US interest rate cut and showed little reaction to the news of an assassination attempt on US presidential candidate Donald Trump. Richard Snow, a strategist at dailyFX, noted that gold prices were boosted by lower US inflation data, which suggests a clear path towards higher prices. He also pointed out that gold is flourishing in a low interest rate environment, and the mere anticipation of a rate cut by the US Federal Reserve is driving prices up.
Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, commented that investors believe inflation is moving in the right direction to support a Fed rate cut sooner rather than later, especially after the latest CPI report showed slower-than-expected figures for both headline and core inflation, on both a monthly and yearly basis. 'Activity on Fed funds futures indicates that the likelihood of a September rate cut has risen to 95%,' she stated.
