Gold prices were steady in Dubai in early trade on Wednesday as global rates were trading below $2,400 per ounce.
In the UAE, all the variants of the yellow metal 24K, 22K, 21K and 18K were unchanged, trading at Dh289.75, Dh268.25, Dh259.75 and Dh222.50 per gram, respectively, at the opening of the markets on Wednesday.
Globally, spot gold was trading at $2,393 an ounce, up 0.39 per cent, at 9.10 am UAE time.
Recession fears spooked investors globally earlier this week, sending equity and commodity markets into a tailspin. The yellow metal also lost Dh7 per gram in a session in Dubai that day.
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Mathieu Racheter, head of equity strategy research, Julius Baer, said that market participants continued to worry about the prospects of a recession in the US given the recent weak economic data out of the world’s largest economy.
“The sell-off in global equities is likely exacerbated by the lower liquidity levels typical of the summer months. Our view has been for some time now that equity markets were ripe for a near-term correction given the elevated positioning coupled with optimistic earnings expectations.
“Nevertheless, the fast-paced cascade move in equities has surprised us too. As we still believe that the current batch of soft data in the US marks a temporary pause in the ongoing economic recovery rather than the start of a recession, we stick to a soft landing in our baseline scenario and recommend investors to remain calm for now,” he said.
Racheter added that real-time data on the US economy still paints a solid picture while US companies overall delivered solid results in the second quarter despite rather ambitious expectations from investors.