Gold prices jumped in Dubai on Friday due to tension in the Middle East and rising bets that the US will cut interest rates later this year.
In the UAE, the 24K variant was trading at Dh286.25 per gram on Friday afternoon, up Dh2 per gram from last night’s close. Among the other variants, 22K was trading at Dh265; 21K at Dh256.50;and 18K at Dh220 per gram. Gold prices in Dubai have risen by Dh5 per gram since Tuesday.
Spot gold was trading at $2,366.3 per ounce, up 0.23 per cent.
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Joseph Dahrieh, managing principal at Tickmill, said gold inched up after trading within a narrow range.
“The yellow metal’s price action reflected ongoing uncertainty regarding the Federal Reserve’s timeline for interest rate cuts, leaving traders cautious. However, the latest US data supported the anticipated number of rate cuts for the remainder of the year. While Federal Reserve officials lean towards a single cut, market speculation suggests there could be two, driven by slowing inflation and cooling economic conditions. These factors keep traders vigilant, waiting for more definitive cues that may emerge from upcoming economic reports,” he said.
Chris Weston, head of research at Pepperstone, said the clearly defined range of $2,430 to $2,285 reflects this patient stance, although, within the $145 range, there are moves being made that traders are capitalising on.
“Still, I expect we’ll see these levels hold until we get a more immediate need to reweight gold allocations higher in the broad portfolio,” he said.