Gold prices in Dubai started higher on Thursday morning, rebounding after a brief drop below Dh300 per gram on Wednesday. By 9am UAE time, the 24K gold was trading at Dh302.0 per gram at market opening, an increase from Dh300.75 at market close. The precious metal briefly dipped below the Dh300 per gram mark on Wednesday evening due to market pressures. Other variants, including 22K, 21K, and 18K, were trading at Dh279.75, Dh270.75, and Dh232.0 per gram respectively.
Internationally, gold was trading at $2,494.44 per ounce, showing a slight decrease of 0.06 percent. Joseph Dahrieh, managing principal at Tickmill, noted that gold prices were under pressure and traders might remain cautious ahead of the Federal Reserve meeting, awaiting more economic data. He highlighted that while interest rate cuts are anticipated, the magnitude remains uncertain. The release of weaker-than-expected manufacturing PMI data has somewhat increased the likelihood of a significant rate cut at the upcoming Federal Reserve meeting. Gold could gain more support if forthcoming economic data strengthens expectations for a larger cut in September.
Dahrieh also pointed out that market participants are now focusing on the upcoming job report, which will offer insights into the labor market's performance. Additionally, central banks' continued accumulation of gold in recent months could sustain high gold valuations. Tickmill's managing principal anticipates a continuation of the stock market selloff, potentially driving investors towards safe-haven assets like gold.
