Gold prices in Dubai opened higher on Thursday morning after briefly slipping below Dh300 per gram level on Wednesday.
At 9am UAE time, the 24K variant of the yellow was trading at Dh302.0 per gram at the opening of the markets on Thursday, up from Dh300.75 at the close of the markets. The yellow metal fell below the psychological barrier of Dh300 per gram briefly on Wednesday evening as it came under pressure.
Among the other variants, 22K, 21K and 18K were trading at Dh279.75, Dh270.75 and Dh232.0 per gram, respectively.
Globally, gold was trading at $2,494.44 per ounce, down 0.06 per cent.
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Joseph Dahrieh, managing principal at Tickmill, said gold prices were under pressure and traders could remain cautious as they wait for additional economic data this week as the Federal Reserve meeting comes closer.
“Although expectations remain focused on the start of interest rate cuts, the size of the cuts could remain uncertain. Weaker-than-expected manufacturing PMI data has supported to a certain extent the probability of a larger interest rate cut at the next Federal Reserve meeting. Gold could find more support if upcoming economic data drive expectations for a larger cut in September higher,” he said.
“Market participants are now focused on the job report which will be out later this week. The NFP (nonfarm payrolls) report will provide insights into the labour market’s performance. Meanwhile, central banks have continued to accumulate gold in recent months, which could help keep gold at high valuations,” Dahrieh added.
Tickmill’s managing principal sees a continuation in the stock market selloff, which could also drive investors toward safe haven assets and could benefit gold.