Gold prices increased by Dh1 per gram in Dubai on Friday morning, following a decline of over Dh7 per gram on Thursday. According to the Dubai Jewellery Group, 24K gold was trading at Dh287 per gram on Friday morning, up from Dh286.0 at the market close on Thursday. The price drop of Dh7.25 per gram on Thursday was attributed to global price declines driven by investor profit-taking.
Other karat variants, including 22K, 21K, and 18K, were trading at Dh265.75, Dh257.25, and Dh220.5 per gram, respectively. Globally, spot gold was trading at $2,373.84 per ounce at 9.55am UAE time, marking a 0.43% increase. Earlier in the day, it had dipped below $2,370.
Mazen Salhab, chief market strategist for Mena at BDSwiss, noted that gold prices hit a two-week low on Thursday after a brief rebound attempt over two sessions. He attributed the decline to cautious market sentiment ahead of critical US economic data, which could influence potential Federal Reserve rate cuts this year. Investors are awaiting the June PCE price index report due on Friday.
Salhab added that due to this uncertainty, traders might refrain from aggressive moves and await clearer indications of the Fed's policy direction. Expectations of a potential rate-cutting cycle starting in September have kept the US dollar subdued, staying below a recent two-week high. A risk-off sentiment in global equity markets, typically benefiting safe-haven assets like gold, could temporarily support gold prices. Longer-term support for gold may come from anticipated increased demand in India, ongoing geopolitical tensions, and concerns over economic slowdown.
