Gold prices experienced a decline at the start of trading in Dubai on Tuesday, according to data from the Dubai Jewellery Group. The data indicated that 24K gold was trading at Dh286.75 per gram during the early hours, a decrease from Dh287.50 at Monday's market close. Similarly, the prices for other karats, 22K, 21K, and 18K, also fell to Dh265.5, Dh257, and Dh220.25 per gram, respectively. On a global scale, gold was trading at $2,365.1 per ounce, marking a slight increase of 0.14 percent.
George Khoury, the global head of education and research at CFI, explained that following a significant surge last week, gold prices have retreated as investors opted to secure their profits. Despite this, gold has maintained close to its one-month high, influenced by weaker-than-anticipated US economic indicators. The Non-Farm Payrolls (NFP) Report highlighted a deceleration in wage growth in the US, alongside a rise in unemployment to 4.1 percent, suggesting a weakening labor market. Concurrently, there are strong anticipations of a possible rate cut by the Federal Reserve in September, which could further bolster gold prices.
This week, market focus is on Federal Reserve Chair Jerome Powell's semi-annual Congressional testimony, remarks from various Fed officials, and forthcoming US inflation data. New data could play a pivotal role in determining expectations for rate cuts, with dovish data and statements potentially offering additional support for gold. Furthermore, Khoury noted that ongoing political risks in Europe following the election results in France and uncertainties surrounding the US presidential election could enhance gold's appeal as a safe-haven asset in the medium term.
