Gold prices remained stable in Dubai during early Wednesday trading as international rates were below $2,400 per ounce. Within the UAE, the prices of all gold variants—24K, 22K, 21K, and 18K—remained constant, trading at Dh289.75, Dh268.25, Dh259.75, and Dh222.50 per gram respectively, at the market opening on Wednesday.
Globally, spot gold was trading at $2,393 per ounce, a 0.39 percent increase, at 9.10 am UAE time. Earlier this week, global recession fears led to a panic among investors, causing a sharp decline in equity and commodity markets. In Dubai, gold prices dropped by Dh7 per gram during that session.
Mathieu Racheter, head of equity strategy research at Julius Baer, noted that market participants are increasingly concerned about the possibility of a US recession due to recent weak economic data from the world's largest economy. "The sell-off in global equities is likely intensified by the lower liquidity typically seen during summer months. We have long held the view that equity markets were due for a near-term correction given the high investor positioning and overly optimistic earnings expectations."
"However, the rapid decline in equities has also taken us by surprise. We still believe that the current soft data in the US indicates a temporary pause in the economic recovery rather than the onset of a recession. Therefore, we maintain a scenario of a soft landing and advise investors to stay calm for now," he added. Racheter further mentioned that real-time data on the US economy continues to show strength, and US companies generally performed well in the second quarter despite high investor expectations.
