Gold prices edged up at the start of trading on Monday. By 9 am UAE time, the 24K variant of the precious metal was trading at Dh322.0 per gram, a slight increase of Dh0.25 per gram from last week's closing price. The yellow metal had dipped to Dh316 per gram earlier in the week before rebounding later. Among the other variants, 22K, 21K, and 18K were trading at Dh298.25, Dh288.75, and Dh247.5 per gram, respectively.
Spot gold was trading at $2,660.46 per ounce, up 0.45% by 9.20 am UAE time. Samer Hasn, a senior market analyst at XS.com, noted that gold is attempting to capitalize on the heightened geopolitical tensions in the Middle East, with further escalation expected. However, the upward trend in Treasury yields could continue to exert pressure on gold, potentially limiting its gains.
"Markets are bracing for Israel’s response to an unprecedented Iranian attack, which could escalate the regional conflict more than ever before. The Israeli defence minister, known for his public dissent with the prime minister over escalating the war, stated that the response would be both strong and surprising," said Hasn.
On the economic front, the minutes from the Federal Open Market Committee meeting provided mixed signals for the markets. While there was broad support for the Fed’s recent decision to cut rates by half a percentage point, the minutes indicated that policymakers did not want this move to be seen as a precursor for further significant cuts in the future.
