Gold prices experienced a decline of over Dh1 upon the opening of markets in Dubai on Tuesday. By 9am UAE time, the 24K variant of the precious metal dropped by Dh1.5 to Dh331.0 per gram, a decrease from last night’s closing price of Dh332.5. Among other variants, 22K, 21K, and 18K also opened lower at Dh306.5, Dh296.75, and Dh254.5 per gram respectively.
The prices had reached a peak last week during the Indian festival of Diwali, but they have since fallen both globally and in Dubai, providing some relief to shoppers. Globally, spot gold was trading at $2,735.7 per ounce, down 0.07% at 9.15am UAE time.
Wael Makarem, lead financial markets strategist at Exness, noted that markets are preparing for the highly anticipated US presidential election and the Federal Reserve’s policy decision. “Recent opinion polls indicate a close contest between Vice President Kamala Harris and former President Donald Trump. This uncertainty could cause volatility in the coming days as traders react to the election results. Meanwhile, gold may continue to receive support if the Federal Reserve maintains its rate-cutting approach, although expectations have moderated regarding the pace of monetary policy easing,” Makarem explained.
The Fed is anticipated to announce a 25 basis point interest rate cut this week, following a more substantial half-percentage point reduction in September. Additionally, markets are expecting another quarter-point cut in December. “Ongoing tensions in the Middle East could enhance gold’s safe-haven appeal, supporting prices alongside sustained demand from central banks and economic uncertainties,” he added.
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