Gold prices rise in Dubai ahead of US inflation data
In anticipation of US inflation data, gold prices surge in Dubai.
The US Consumer Price Index (CPI) is scheduled for release on Wednesday, and investors will be keeping a close eye on it.
In step with the increase in global rates, gold prices in the UAE climbed at Wednesday's market opening.
On Wednesday morning, the 24K version of the yellow metal was selling for Dh285.5 per gramme, while the 22K, 21K, and 18K versions were going for Dh264.25, Dh256.0, and Dh219.25 per gramme, respectively, according to data from the Dubai Jewellery Group.
According to George Pavel, general manager at Capex.com Middle East, investors are being cautious ahead of this week's crucial US inflation data releases, which could cause gold prices to rise or fall slightly.
He went on to say that Wednesday's release of the US Consumer Price Index (CPI) is a big deal for investors.
The timing of the Federal Reserve's initial rate adjustments could be revealed by upcoming reports, making them crucial. Depending on the inflation data, investors are especially interested in the possibility of a rate cut in September. Gold prices could take a hit if inflation numbers end up being higher than expected, which could reduce the chances of a rate cut. He did say that current price levels would be supported by demand for gold in Asian markets, especially China.
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