Gold Prices Dip in UAE Following Record Peak

Gold prices in the UAE slightly decreased on Tuesday morning after reaching a record peak.

In Dubai, the 24K variant of gold fell by half a dirham to Dh263.75 per gram, compared to the previous night’s close of Dh264.25 per gram. 

Similarly, other variants, including 22K, 21K, and 18K, opened lower at Dh244.25, Dh236.50, and Dh202.75 per gram, respectively.

Spot gold declined, reaching $2,179.14 per gram, a decrease of 0.21 percent at 9:05 a.m. UAE time.

Insights from Wael Makarem:

Wael Makarem, financial markets strategist lead at Exness, noted that gold prices paused following a strong surge that led to a peak close to $2,200 on Friday. 

He attributed this surge to continued central bank purchases and comments by US Federal Reserve chairman Jerome Powell, indicating expectations of interest rate cuts later in the year.

Factors Influencing Future Trends:

Makarem highlighted the upcoming release of US inflation data, suggesting that the CPI report could influence expectations regarding the Federal Reserve’s stance on interest rate cuts. 

A softer reading in the CPI report might support the case for earlier rate cuts, potentially leading to further increases in gold prices.

Continued Support for Gold Prices:

Additionally, Makarem pointed out that geopolitical risks and concerns about global economic growth could contribute to the upward trajectory of gold prices, providing further support for the precious metal.