Gold prices in Dubai at the opening of the markets on Tuesday, rising by half a dirham per gram.
According to Dubai Jewellery Group data, 24K was selling for Dh290.25 per gram at 9 am UAE time on Tuesday compared to Dh289.75 at the close of the markets on Monday. Among the other variants, 22K, 21K and 18K were trading at Dh268.75, Dh260.25 and Dh223.0 per gram, respectively.
Globally, spot gold was steady at $2,395.61 per ounce at 9.10 am UAE time.
George Khoury, global head of education and research at CFI, said gold benefited from a weaker dollar in response to US President Joe Biden’s decision to withdraw from the 2024 presidential race.
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“This move clears the way for Kamala Harris to challenge Donald Trump, prompting investors to view bullion as a hedge against an uncertain political and market outlook. The prospect of rate cuts and ongoing political uncertainty in the United States are providing support for gold prices, setting up conditions for a potential rebound in the coming day,” he said.
“This week, the gold market could face further volatility as investors anticipate several important economic indicators, including the US Personal Consumption Expenditures (PCE) figure on Friday, July flash PMIs, advance second-quarter GDP, and weekly jobless claims. Additional support for gold may also come from the slowing Chinese economy, as evidenced by the People’s Bank of China’s (PBOC) interest rate cuts,” added Khoury.
The situation in the Middle East, according to Khoury, also supports gold price appreciation, as ongoing geopolitical tensions, including recent escalations, raise the risk of a broader conflict.