Gold prices rose Dh0.75 per gram in Dubai at the opening of the markets in the UAE after losing Dh2.5 per gram on Wednesday, hitting a two-week low.
At 9am UAE time on Thursday, the 24K variant of the yellow metal was trading at Dh278.75 per gram in Dubai, up from Dh278.0 per gram at the close of the markets on Wednesday. The metal lost Dh2.5 per gram on Wednesday.
Among the other variants, 22K, 21K and 18K were trading higher at Dh258.0, Dh249.75 and Dh214.0 per gram, respectively.
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Globally, gold was steady at $2,299 per ounce at 9.10am UAE time, trading at nearly a two-week low, due to a stronger US dollar and higher bond yields.
Andreas Thalassinos, senior market analyst at Neotrades, said the market’s attention is now focused on the upcoming inflation data expected on Friday, which could significantly affect the Federal Reserve’s decisions on interest rates.
“The Personal Consumption Expenditures (PCE) data is scheduled for release this Friday and could affect traders’ expectations in addition to a series of Federal Reserve governors’ speeches during the week. While last Friday’s data revealed a slight increase in US business activity, presenting a challenge for gold, the market still anticipates the possibility of two interest rate cuts this year, potentially supporting the asset,” said Thalassinos.
Marc Pussard, head of risk at APM Capital, said gold price tumbled as the Greenback staged a recovery underpinned by a minimal rise in US Treasury bond yields.