Gold prices in the UAE edged higher on Thursday morning. According to the Dubai Jewellery Group data, the 24K variant of the yellow metal opened at Dh246.25 per gram, up Dh0.25 from last night. While 22K, 21K and 18K opened at Dh228.0, Dh220.5, and Dh189.0 per gram, respectively.
Spot gold was up 0.3 per cent at $2,032.08 per ounce as of 9.25 am UAE time as the US dollar index fell 0.1 per cent, on its second session of decline, making bullion more attractive for buyers holding other currencies.
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Diego Colman, a contributing strategist at dailyFX, said markets will be on high alert on Thursday when the US Bureau of Labor Statistics releases its latest consumer price index report, as the data could guide the Federal Reserve’s next moves in terms of monetary policy and, therefore, the timing of the first interest rate cut.
“US CPI looming, (gold) bears may be taking a cautious approach and lightening their load ahead of the event,” said Matt Simpson, a senior analyst at City Index.
Saxo Bank said in its first quarter outlook report that precious metals will see renewed demand amid the outlook for a lower Fed Funds Rate and lower real yields.
“Looking for gold to reach a fresh record high, with silver potentially receiving an additional boost from COP28 and increased spending on renewable energy,” it said in the report.