Gold prices slipped Dh2 per gram at the opening of the markets in Dubai on Wednesday after hitting an all-time on Tuesday evening.
At 9am UAE time on Wednesday, the 24K variant of the yellow metal slipped to Dh304.5 per gram compared to last night’s close of Dh306.5 per gram, an all-time high. Among the other variants, 22K, 21K and 18K were trading at Dh282.0, Dh273.0 and Dh234.0 per gram, respectively.
Globally, spot gold was trading at $2,516.96 per ounce, up 0.15 per cent. The yellow metal prices crossed $2,500 earlier, driven by a weaker dollar and bets on the interest rate cuts by the US Federal Reserve.
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Tito Iakopa, commercial director at FlowCommunity, said gold prices soared to an all-time high, fuelled by expectations of a Federal Reserve rate cut.
“Investors are closely watching for further direction from the Federal Reserve this week, particularly focusing on Fed Chair Jerome Powell’s upcoming speech at Jackson Hole on Friday, as well as the release of the latest FOMC minutes on Wednesday. Markets are currently pricing in a significant easing of monetary policy, with expectations of a total of 100 basis points in rate cuts for this year. This anticipation has led to a continuous decline in the US dollar, which is nearing a 7-month low, and a drop in US Treasury yields, both of which further support gold prices,” said Iakopa.
“Additionally, the uncertainty surrounding regional geopolitical developments could maintain high demand for gold as a safe haven. The upcoming US elections are also likely to impact market sentiment, potentially increasing the allure of gold and other safe-haven assets during times of political uncertainty,” he said.