Gold prices in Dubai saw a slight increase at the market opening on Thursday, following a surge of Dh2.5 per gram on Wednesday, marking nearly a two-week high. By 9am UAE time on Thursday, the 24K gold variant was trading at Dh285.5 per gram, a Dh0.25 increase from the previous day's close. The price jump was consistent with the nearly Dh2.5 rise observed yesterday. Other variants, including 22K, 21K, and 18K, were trading at Dh264.25, Dh256, and Dh219.25 per gram, respectively.
On a global scale, gold maintained stability at $2,357.89 per ounce at 9.10am UAE time. Rania Gule, a market analyst at XS.com, noted that the potential for a decrease in gold prices is currently constrained due to the ongoing influence of Federal Reserve Chairman Jerome Powell's remarks at the ECB Forum on Central Banking in Sintra on US Treasury yields. The benchmark 10-year US Treasury yield dropped to 4.43 percent after experiencing its most significant daily gains earlier in the week. Despite positive inflation data suggesting a deflationary trend, Powell emphasized the need for further evidence before considering rate cuts.
Consequently, market expectations for a rate cut in September have slightly risen, influenced by Powell's recognition of progress in inflation reduction. Presently, there is a 67 percent chance of a Fed rate cut in September, up from approximately 63 percent prior to Powell's comments. Gule believes that renewed expectations of a dovish Federal Reserve could bolster gold demand, supported by the World Gold Council's report indicating central banks' acquisition of 10 tons of gold in May. Notably, the National Bank of Poland emerged as the largest buyer in May, increasing its gold reserves by 10 tons.
