Gold prices in Dubai experienced a slight increase at the market opening on Tuesday, rising by half a dirham per gram. Data from the Dubai Jewellery Group indicates that 24K gold was priced at Dh290.25 per gram at 9 am UAE time on Tuesday, up from Dh289.75 at Monday's market close. Other karats, including 22K, 21K, and 18K, traded at Dh268.75, Dh260.25, and Dh223.0 per gram, respectively.
Internationally, spot gold remained stable at $2,395.61 per ounce at 9.10 am UAE time. George Khoury, the global head of education and research at CFI, attributed gold's gains to a weaker dollar following President Joe Biden's withdrawal from the 2024 presidential race. This decision paves the way for Kamala Harris to contest against Donald Trump, leading investors to see gold as a safeguard against uncertain political and market conditions. The potential for interest rate cuts and ongoing political instability in the U.S. are bolstering gold prices, potentially setting the stage for a rebound in the near future, according to Khoury.
This week, gold markets may see additional volatility as investors await key economic indicators, such as the US Personal Consumption Expenditures (PCE) figure, July flash PMIs, advance second-quarter GDP, and weekly jobless claims. The slowing Chinese economy, highlighted by the People's Bank of China's interest rate cuts, could also provide further support for gold. Khoury also noted that the Middle East's geopolitical tensions, including recent escalations, are contributing to the appreciation of gold prices due to the increased risk of a wider conflict.
