Gold prices experienced another decline at the start of trading in Dubai on Wednesday, marking the third consecutive drop in early trading this week. By 9am UAE time, the 24K variant of gold had dropped to Dh320.5 per gram, down from Dh321.25 per gram at the close of trading on Tuesday. Similarly, the prices of 22K, 21K, and 18K gold also decreased to Dh296.75, Dh287.25, and Dh246.25 per gram, respectively.
On a global scale, spot gold was trading at $2,650.3 per ounce, showing a slight increase of 0.19 percent. Rania Gule, a senior market analyst at XS.com, noted that the drop in gold prices below the $2,640 per ounce level indicates a cautious approach in the financial markets ahead of the upcoming US employment data. "In my view, this decline occurred despite gold staying within its recent trading range, suggesting that traders are awaiting further signals from the Federal Reserve about the future of monetary policy, particularly with the imminent release of the US Job Openings and Labor Turnover Survey (JOLTS), which could be crucial for understanding the central bank's future moves," she explained.
The US dollar is also gradually recovering from the pressure caused by recent remarks from Federal Reserve policymakers, which have influenced gold's performance, given their inverse relationship. "The comments by Fed Governor Christopher Waller, emphasizing that monetary policy remains sufficiently restrictive, hinted at a potentially slower pace of interest rate cuts in the future, causing mixed market reactions. These statements diminished gold's appeal as a safe-haven asset, but they also implied the possibility of sustained inflation pressures, a factor that supports gold prices in the long run," Gule added.
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