Gold prices in the UAE experienced a slight decline at the start of the week, yet they continue to trade above Dh300 per gram. According to the Dubai Jewellery Group, the 24K gold was priced at Dh304.0 per gram at 9am UAE time, a slight decrease from Dh304.25 per gram at the weekend's close. The other variants, 22K, 21K, and 18K, were trading at Dh281.25, Dh272.5, and Dh233.5 per gram respectively. Internationally, spot gold was at $2,510.32 an ounce, showing a 0.22% decrease at 9.10am UAE time.
Samer Hasn, a senior market analyst at XS.com, noted that gold prices rose last week following US Federal Reserve chair Jerome Powell's speech at Jackson Hole, with expectations of softer signals from the Fed regarding interest rate cuts this year. The market is also closely monitoring the ceasefire negotiations in Gaza, given the prevailing negative sentiment surrounding them.
"I think Powell's remarks about the upcoming period will likely not extend past next September, which is the anticipated start of the interest rate cut trajectory. However, the market is already anticipating this timeline and has priced it in, particularly the scenario of a 25-basis point cut and no expectation of rates being held. Thus, Powell needs to reinforce this expectation with his words, or else a lukewarm tone could negatively impact gold," Hasn explained. According to the CME FedWatch Tool, there is a 74.5% chance of a 25-basis point cut in September, compared to a 26.5% chance of a half-point cut and a full-point cut by year-end.
