Gold prices rose in Dubai in early trade on the first trading day of the week after prices slumped during the last few trading sessions last week.
In the UAE, the 24K variant of the precious metal rose half-a-dirham per gram to Dh291.25 per gram at 9am compared to last week’s close of Dh290.75 per gram. The yellow metal prices fell nearly Dh8 per gram in Dubai in a day on Friday.
Similarly, 22K, 21K and 18K also opened higher at Dh269.75, Dh261.0 and Dh223.75 per gram, respectively.
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Globally, spot gold was down 0.19 per cent at $2,406.8 per ounce at 9.10am.
Chris Weston, head of research at Pepperstone, said US President Joe Biden stepping down as the Democratic Party nominee could, at the margin, be seen as a headwind for gold. Although few are trading that stance today, the weaker dollar is helping support markets throughout Asia.
“Kamala Harris hasn’t yet got the full nominee, and as Obama has not shown a preference, it may still come down to an open contest; but I feel the prediction markets are right to have her as the big favourite to claim that position. We’re already hearing of over $50 million pledged by Democrat donors, so the news flow seems to have revitalised the Democrat’s prospects,” said Weston.
He said there are still enough uncertainties to limit the downside in gold, and economic trends are important variables that will drive interest rate cut expectations, and by extension the gold price.
“But when we look at our checklist of the truly bullish medium-term kickers for gold, then Harris potentially lifting the Democrat’s prospects into November does reduce reasons to own gold as a hedge against Trump/Vance’s hawkish foreign policy and massive deficit spending over the next 10 years,” added Weston.