Gold Prices Inch Up as Investors Await US Inflation Data

Gold prices saw a slight uptick at the opening of the markets on Thursday, building on the gains observed the previous day.

Dubai Jewellery Group Reports Price Movement:

According to data from the Dubai Jewellery Group, 24K gold stood at Dh265.75 per gram on Thursday morning, slightly higher than the previous day’s closing price of Dh265.5 per gram. Other variants of gold, including 22K, 21K, and 18K, also saw marginal increases in their trading prices.

Internationally, spot gold prices were trading at $2,195.24 per ounce, reflecting a modest increase of 0.19 percent. This movement comes as investors analyze recent comments made by US Federal Reserve Governor Christopher Waller regarding potential interest rate cuts.

Analyst Insights and Market Expectations:

George Khoury, Global Head of Education and Research at CFI noted that gold prices surged higher amidst expectations of monetary policy adjustments by the Federal Reserve. 

Speculation regarding multiple rate cuts this year, as suggested by Chicago Fed President Austan Goolsbee, has contributed to the bullish momentum in gold.

Investors are closely monitoring upcoming US inflation data, scheduled for release on Friday, which could influence the Federal Reserve’s policy decisions. 

A weaker-than-expected inflation reading may further support gold prices, while positive economic indicators, such as February’s durable goods orders exceeding expectations, could impact market sentiment.

Central Bank Activity and Market Stability:

Khoury also highlighted the role of central bank gold purchases in stabilizing the market. Despite fluctuations driven by economic data and policy announcements, gold prices remain upward, buoyed by ongoing global uncertainties.