Gold prices were steady in the UAE on Wednesday morning after losing half a dirham per gram on Tuesday.
As of 9am, UAE time, the 24K variant of the precious metal was trading at Dh280.75 per gram in Dubai while 22K, 21K and 18K were trading at Dh260, Dh251.75, and Dh215.75 per gram, respectively.
Spot gold was trading at $2,319.04 per ounce, up 0.17 per cent at 9.10am, UAE time.
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Terence Hove, a senior financial market strategist at Exness, said gold prices remained under some pressure after hitting a peak in early April and seeing a period of correction since.
“However, the recent US Nonfarm Payrolls (NFP) data has boosted expectations that the Federal Reserve (Fed) could lower interest rates sooner this year, with markets pricing in a first-rate cut in September. Anticipations of an easing cycle and lower interest rates could support gold prices although traders could remain focused on the comments from Federal Reserve members as a hawkish tone could support the US dollar and weigh on gold,” said Hove.
“At the same time, central bank gold purchases could continue to support the precious metal to a certain extent. While central banks remained net buyers for several months in a row, the volumes of purchases declined to a certain extent, creating some risks. Rapidly changing geopolitical conditions in the Middle East could also remain a source of volatility for gold. A flare-up in tensions could boost a flight toward safe-haven assets, which could strengthen gold prices. However, progress toward a cease-fire could put some pressure on the asset,” he said.