Gold prices experienced a decline at the market opening on Thursday, shedding half a dirham per gram. According to data from the Dubai Jewellery Group, the 24K variant of the precious metal was trading at Dh322.25 per gram at 9 am UAE time, a drop from Dh322.75 at the close of markets on Wednesday. Among other variants, 22K opened at Dh298.25, 21K at Dh288.75, and 18K at Dh247.5 per gram.
Spot gold was trading at $2,660.2 per ounce, up 0.12 per cent at 9.05 am UAE time. Gold has seen a nearly 30 per cent increase so far this year, driven by robust demand fueled by geopolitical tensions, central bank purchases, and expectations of higher rate cuts.
Vijay Valecha, Chief Investment Officer at Century Financial, noted that gold prices surged following the release of US consumer confidence data, which unexpectedly fell in September to 98.7, marking the largest drop since August 2021. "The decline is linked to concerns about the labour market. The percentage of consumers reporting a strong job market decreased for the seventh consecutive month to 30.9 per cent, its lowest since March 2021. This marks the longest streak of declines since the 2008 financial crisis. Conversely, the proportion of consumers finding it difficult to secure employment reached its highest level since early 2021. In response to this data, swap traders increased bets on more than three-quarters of a point of rate cuts by year-end," he explained.
