Gold prices in the UAE decreased at the start of trading on Tuesday, following a rise of Dh2.5 per gram on Monday. The 24K variant of gold was at Dh284.75 per gram on Tuesday morning, a slight drop from Monday's Dh285.0 per gram at market close. Similarly, 22K, 21K, and 18K were trading at Dh263.5, Dh255.0, and Dh218.75 per gram, respectively.
Spot gold remained stable early in the morning, trading at $2,353.03 per ounce, with attention shifting to inflation data. Saxo Bank noted that gold exceeded $2,350 per ounce, bouncing back from the previous session's two-week low of $2,330. Safe-haven demand provided support for these gains as the market continued to assess the US Federal Reserve's policy outlook, with both metals poised to sustain significant gains for May.
Diego Colman, a contributing strategist at dailyFX, expressed a neutral to slightly bearish near-term outlook for the precious metal. He mentioned the upcoming release of fresh core personal consumption expenditures price data, the Fed's preferred inflation measure, and indicated a small positive shift in the annual reading to 2.7 per cent, down from 2.8 per cent, as encouraging news for policymakers.
