Dubai: Gold prices rise in early trade, 22K trades below Dh300 per gram
Gold jumped at the start of the markets in Dubai on Monday after the metal was down sharply over the weekend. 24K sold at Dh321.25 per gram as per the Dubai Jewellery Group report (Dh320.75 per gram as of the market close on Sunday).
Other versions like 22K, 21K and 18K were fetching Dh297.5, Dh288.0 and Dh246.75 per gram respectively.
Last week the 22K model went over Dh300 per gram after it started a slow-going run in the first few days of the week before breaking out.
Spot gold was at $2,652.35 an ounce around the world, up 0.13 per cent.
According to Terence Hove, a financial markets strategist consultant for Exness, gold prices were off this weekend as gold remains under pressure from rising Treasury yields and the US dollar as markets wait for the Federal Reserve monetary policy meeting.
"Markets have their eyes set on a 25-basis-point rate cut in December, but inflation data is suggesting the Federal Reserve could step back in early 2025 as it slows its progress towards 2 percent inflation," Hove said.
A recent dovish move by other major central banks (Swiss National Bank, European Central Bank, Bank of Canada, Bank of Japan, etc) to lower interest rates and the decision of the Bank of Japan to stay on track have made little immediate difference to gold prices ahead of the Fed meeting. But these policy changes could affect gold’s performance in the long term.
"Gold is being supported by geopolitical risks in eastern Europe and the Middle East and uncertainties around the US President-elect Donald Trump’s proposed tariffs despite the pressure. Additionally, strong central bank demand may last until 2025 which lends strong medium-term support", said Hove.
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