Gold prices rose by Dh2 per gram at the start of trading in the UAE on Wednesday, following a dip to nearly Dh300 per gram on Tuesday night. By 9am UAE time, the 24K gold variant surged to Dh302.25 per gram, a Dh2 increase from its previous close of Dh300.25 per gram. Meanwhile, the 22K, 21K, and 18K variants opened at Dh279.75, Dh270.75, and Dh232.25 per gram, respectively.
Internationally, gold was trading at $2,496.12 per ounce, marking a 0.13% increase at 9.07 am UAE time. Tito Iakopa, commercial director at FlowCommunity, noted that gold is currently trading in a tight range, with minimal gains as investors look ahead to crucial economic data releases this week.
"Geopolitical tensions, central bank demand, concerns over further economic downturn in China, and the upcoming US elections could bolster gold prices. Moreover, market participants are on edge ahead of the US labor market data release on Friday, which is expected to heavily impact market sentiment and the Federal Reserve's interest rate decisions this month," Iakopa explained.
Market speculation currently favors a 25 basis point rate cut over a more substantial 50 basis point cut, a decision that will significantly influence gold's future direction," he added.
