Gold prices remained stable during the opening of markets in Dubai on Tuesday, following a slight decline of Dh2 per gram on Monday. By 9am UAE time, the 24K variant of gold was trading at Dh319.5 per gram. Other variants also saw their prices: 22K opened at Dh296.0, 21K at Dh286.5, and 18K at Dh245.5 per gram. On a global scale, spot gold was trading at $2,639.79 per ounce, reflecting a 0.17% increase at 9.05 am UAE time.
Analysts attribute this week's profit-taking to a recent surge in gold prices, which hit an all-time high last week. Although prices eased on Monday, they remained close to last week's peak. "Gold's upward trajectory has been fueled by safe-haven demand, driven by escalating geopolitical tensions in the Middle East, the Federal Reserve's recent interest rate cut, and economic concerns. Gold prices could further benefit from market expectations of another 50-basis-point rate cut this year," explained Tito Iakopa, commercial director at FlowCommunity.
Iakopa highlighted that this week's focus is on the non-farm payrolls report, which could offer insights into the US labor market. Additionally, Fed Chair Jerome Powell and Governor Michelle Bowman are scheduled to speak later today, potentially causing volatility in gold prices. "If Powell hints at further monetary easing, the dollar could weaken, thereby bolstering gold. Meanwhile, ongoing geopolitical tensions in the Middle East continue to boost demand for safe-haven assets like gold, as investors seek to hedge against risks, further supporting the precious metal's price," he added.
