Gold Prices Dip in UAE Markets Amid Global Trends

Gold prices fell more than Dh1 per gram at the UAE markets opening on Monday. 

According to Dubai Jewellery Group data, the 24K variant of the yellow metal was trading at Dh260.0 per gram on Monday morning, compared to last week’s close of Dh261.25 per gram. 

Other variants also declined, with 22K opening at Dh240.75, 21K at Dh233.0, and 18K at Dh199.75 per gram.

Global Trends Impacting Gold:

Globally, spot gold declined 0.43 percent to $2,147.3 per ounce at 9:20 a.m. UAE time. This decline comes as gold prices traded sideways following reactions to stronger-than-expected US inflation data last week.

The unexpected uptick in inflation halted gold’s surge after a three-week winning streak as traders reassessed expectations regarding the Federal Reserve’s reserve’s interest rate cuts for the year.

Market Analysis and Outlook:

George Pavel, general manager at Capex.com Middle East, commented on the situation, noting that the unexpected increase in inflation introduced uncertainty into the market, fueling price correction risks. 

He also highlighted that last week, the resurgence in treasury yields exerted additional downward pressure on gold prices.

Influence of Federal Reserve’s Actions:

Pavel emphasized the significance of the Federal Open Market Committee (FOMC) meeting scheduled for the week, stating that its outcome would likely heavily influence the trajectory of the gold market. 

Investors are anticipated to closely monitor the Federal Reserve’s economic projections and its president’s comments after the meeting for any indications of the central bank’s stance on monetary policy. A hawkish tone from the Federal Reserve could further weigh on gold prices.