Gold prices in Dubai fell by Dh1.5 per gram at the start of trading on Wednesday, following a near approach to Dh300 per gram on Tuesday. In the UAE, the 24K gold was trading at Dh298.0 per gram at 9am UAE time on Wednesday, down from Dh299.5 per gram the previous night. The other variants, 22K, 21K, and 18K, were trading at Dh276.0, Dh267.25, and Dh229.0 per gram, respectively. Globally, spot gold was down 0.08 per cent at $2,462.08 per ounce.
Rania Gule, senior market analyst at XS.com, noted that gold has recovered most of its weekly losses following gains on Thursday, trading at $2,463 on Tuesday after hitting a monthly peak of $2,475. "Despite this recovery, the price hasn't fully overcome its recent difficulties. The gold market has faced significant volatility over the past week," said Gule. China's expected liquidity injection could boost gold and other cryptocurrencies. Historically, the People's Bank of China increases liquidity in August, as seen on August 11, 2020, August 31, 2021, 2022, and August 28, 2023. However, market activity has been subdued after a modest liquidity increase in June. It is anticipated that China may delay liquidity measures until after the Federal Reserve potentially cuts interest rates, possibly on September 18, which could increase global liquidity and support gold prices.
She also mentioned that geopolitical developments are influencing the market.
