Gold prices in Dubai saw a Dh1 per gram increase during early Thursday trading. Dubai Jewellery Group figures show that by 9am UAE time, the 24K gold was trading at Dh304.5 per gram, up from Dh303.5 per gram at the previous close. The other variants, 22K, 21K, and 18K, were trading at Dh282.0, Dh273.0, and Dh234.0 per gram respectively. Internationally, gold was up 0.3 percent at $2,515.45 per ounce, having briefly dipped below $2,500 on Wednesday before recovering.
Milad Azar, a market analyst at XTB Mena, attributed Wednesday's slight decline in gold prices to cautious investor behavior, as they awaited news on the Federal Reserve's upcoming interest rate decision. He noted that a modest strengthening of the dollar was pressuring gold prices, with traders factoring in a 63.5 percent chance of a 25 basis point cut and a 36.5 percent chance of a 50 basis point cut in September. This assessment follows recent dovish remarks from Fed officials, who have pointed to labor market risks while expressing confidence in inflation returning to target.
Azar also highlighted upcoming economic data releases, including the second estimate of US GDP Annualized for Q2 and the PCE Price Index data, which could cause gold to fluctuate more this week. He added that ongoing geopolitical tensions in the Middle East could also bolster gold, as increased regional conflicts might drive demand for safe-haven assets like gold. Overall, while macroeconomic and geopolitical factors favor gold's continued upward trend, investors are seeking further confirmation.
