Gold prices experienced a dip at the opening of markets in Dubai on Thursday, continuing their decline from the previous session on Wednesday evening.
Over the past few months, gold prices have consistently reached record highs, fueled by expectations of interest rate cuts by the US Federal Reserve, geopolitical tensions in the Middle East, and robust buying from China. The recent drop in prices on Wednesday night and early Thursday is a positive development for Dubai shoppers, especially ahead of the Indian festival Diwali, which is set to be celebrated next week. Many Indians view purchasing gold and precious metal jewelry during this festival as auspicious.
At 9am UAE time on Thursday, the 24K variant of gold decreased to Dh331.25 per gram, compared to the previous close of Dh331.5 per gram. This variant had previously touched an all-time high of Dh333 per gram on Wednesday morning. Among the other variants, 22K, 21K, and 18K fell to Dh305.75, Dh296, and Dh253.75 per gram, respectively.
Spot gold was trading at $2,727.32 per ounce, up 0.22% at 9.20am UAE time, but it had decreased from $2,750 per ounce in early trade on Wednesday.
[Editor's Note: For real-time gold rates, click on the widget below or visit KT's dedicated Trading News page here.]
Vijay Valecha, chief investment officer at Century Financial, noted that gold reached another record high, driven by conflicts in the Middle East and volatility surrounding the upcoming US election, which heightened demand for safe-haven assets. "Gold's rally persists despite the US dollar holding at a more than two-month peak as treasury yields rise. Strong US economic data has led investors to worry that inflation might take longer to fall to the US Federal Reserve's 2% target, resulting in a reduced probability of a 50 bps rate cut in November. Investors are now keenly awaiting the US PMI and initial jobless claims results, expected to be released on Thursday," said Valecha.
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