Gold prices experienced a slight decline at the start of trading in Dubai on Tuesday. According to data from the Dubai Jewellery Group, 24K gold was trading at Dh281.75 per gram at 9am, a decrease of Dh0.25 per gram. The other categories, including 22K, 21K, and 18K, opened at Dh261.0, Dh252.5, and Dh216.5 per gram, respectively.
On a global scale, gold was trading at $2,326.78 per ounce at 9.10am UAE time, marking a 0.23% decrease. Daniel Takieddine, CEO for Mena at BDSwiss, attributed the sideways trading of gold to the uncertainties surrounding future interest rate decisions by the US Federal Reserve. He noted that key US inflation data from May suggested a slowdown, which supports the expectation of two potential rate cuts by the Fed this year. However, he also highlighted the opposition from several influential FOMC members.
Takieddine further explained that political uncertainties in the US and Europe could continue to bolster gold prices. The recent political debate between President Joe Biden and his Republican challenger, Donald Trump, has heightened political uncertainty and could boost gold demand. Moreover, the French parliamentary elections have introduced uncertainty regarding the far-right party's influence on French policies, which could impact gold prices as investors await the results of the second round of voting.
