Gold prices in Dubai continued their upward trend at the opening of the markets on Tuesday, rising more than Dh1 to Dh294.0 per gram.
In the UAE, the 24K variant of the yellow metal jumped by Dh1.25 per gram to Dh294.0 at 9am UAE time on Tuesday. The yellow metal prices have risen by Dh2 per gram in Dubai in the past 24 hours.
Among the variants, 22K, 21K and 18K opened at Dh272.25, Dh263.5 and Dh226.0 per gram, respectively. Globally, gold was trading at $2,429.16 per ounce, up 0.28 per cent.
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Gold has been primarily driven by the US interest rate cut expectations and remained surprisingly unreactive to the news of the assassination attempt on US presidential candidate Donald Trump.
Richard Snow, strategist at dailyFX, said the yellow was lifted by the lower US inflation data “with the path of least resistance to the upside.”
He added that the gold price is thriving in a low interest rate environment and mere anticipation of a rate cut from the US Federal Reserve is pushing the prices higher.
Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said investors suggest that inflation is on the right path to justify a Fed rate cut sooner rather than later after the latest CPI report printed slower-than-expected figures both for headline and core inflation, both on a monthly and on a yearly basis.
“Activity on Fed funds futures showed that the probability of a September rate cut soared to 95 per cent,” he said.