Gold prices dropped by over Dh5 per gram at the start of trading in Dubai on Thursday, mirroring a global decline in the yellow metal's value attributed to profit-taking. By 9 am, the 24K gold was selling at Dh287.75 per gram, a decrease from Dh293.25 at Wednesday's market close, marking a fall of Dh5.5 per gram. Other gold variants, including 22K, 21K, and 18K, also saw declines, trading at Dh266.5, Dh258.0, and Dh221.0 per gram respectively in early Thursday trading. Internationally, spot gold decreased by almost one percent to $2,375.2 per ounce at 9.10am UAE time, as investors locked in profits ahead of crucial US economic data that might influence central bank decisions on interest rates.
Eman AlAyyaf, CEO of EA Trading, noted that investors might adopt a cautious approach pending the release of significant US economic and inflation reports later this week. "These reports are anticipated to influence the Federal Reserve's policy decisions. Key data to monitor includes the second-quarter GDP report on Thursday and the June PCE price index on Friday. These figures could offer insights into the Fed's future moves, with the market currently forecasting rate cuts beginning in September, potentially bolstering gold prices," Eman explained. She further mentioned that this pattern is likely to continue, especially as the US dollar's slight decline from its peak supports the rise in gold prices. "Gold prices could also gain from enhanced market sentiment due to stronger expected demand in India. Central bank demand and geopolitical tensions could continue to be significant factors driving gold prices," she added.
