Gold prices in the UAE experienced a further decline on Friday, dropping by Dh2 per gram since Thursday morning. The 24K variant of the yellow metal decreased to Dh329.25 per gram on Friday evening, down from Dh331.25 per gram at the market's opening on Thursday. Similarly, the prices of 22K, 21K, and 18K gold fell to Dh304.75, Dh295.0, and Dh253.0 per gram, respectively.
Spot gold was trading at $2,729.68 per ounce, reflecting a 0.17 per cent decrease on Friday evening. Bas Kooijman, CEO and asset manager of DHF Capital, attributed the continued decline in gold prices on Friday to profit-taking. "The dollar stabilized, and the 10-year Note yield remained around 4.2 per cent, which somewhat diverted investors from gold. Gold's performance could be influenced by upcoming US economic data, as expectations lean towards a less aggressive Federal Reserve rate-cutting cycle than previously anticipated." Kooijman added, "A slower rate of rate cuts could negatively impact gold. We observe solid support for gold around the $2,714 level and expect it to maintain its upward trajectory, provided this price level remains stable."
Next week, the market's attention will focus on key US economic data that could affect sentiment and expectations regarding the Fed's rate-cutting path, potentially introducing volatility to the gold market. Despite these short-term fluctuations, Kooijman noted that gold's upward momentum remains robust, supported by geopolitical tensions in the Middle East and concerns about a broader conflict. "These factors continue to bolster gold's appeal as a safe haven, along with uncertainties surrounding the upcoming US election, particularly the possibility of a Trump victory," he said, also highlighting that anticipated easing by major central banks is contributing to the demand for the precious metal.
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