UAE: Gold prices drop at the start of the week

Gold prices dropped half a dirham per gram at the opening of the markets in the UAE on Monday.

The Dubai Jewellery Group data showed 24K trading at Dh285.25 per gram at 9 am on Monday as against Dh285.75 per gram over the weekend.

Among the other variants, 22K, 21K and 18K also opened lower at Dh264.0, Dh255.75 and Dh219.25 per gram, respectively.

Gold prices had soared on Friday to surpass their levels in late April.

George Khoury, global head of education and research at CFI, said the market regained part of the losses on Friday recorded during the latest price corrections, buoyed by renewed optimism for potential Federal Reserve interest rate cuts.

“The Federal Reserve remains cautious about reducing rates but markets are expecting a first cut in September. The upcoming inflation data is highly anticipated and will provide further clarity on the state of the US economy. Should this data indicate a downward trend in inflation, it could further enhance the appeal of gold as an investment,” he said.

At the same time, Khoury said geopolitical risks could continue to support gold’s performance although the rapidly changing conditions in the Middle East constitute a source of risk.“Furthermore, recent ETF data highlights a robust demand for gold in Asian markets, especially from China, while central banks sustain an interest in the precious metal,” he added.

Source: khaleejtimes

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