Gold prices slightly dropped on Tuesday morning after rising by Dh1.5 per gram in the previous session as global rates surpassed the $2,300 an ounce milestone.
In the UAE, the 24K variant was trading at Dh279.0 per gram at the opening of the markets on Tuesday, down by Dh0.25 per gram. While 22K, 21K and 18K were trading at Dh258.25, Dh250.0 and Dh14.25 per gram, respectively, at 9 am local time.
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Globally, gold was trading at $2,302.73 per ounce, down 0.32 per cent.
Terence Hove, senior financial market strategist at Exness, said gold stabilised to a certain extent on Monday after reaching its lowest level since early April on Friday, declining 3.5 per cent. This decline was influenced by a stronger-than-expected US jobs report, which, in turn, led to a robust rebound in the US dollar and Treasury yields. The Nonfarm Payrolls (NFP) data for May prompted investors to reconsider their expectations for a Federal Reserve rate cut.
“Market participants remain cautious ahead of this week’s key events. The release of US inflation data and the US Federal Reserve’s rate decision are expected to significantly influence market sentiment, focusing on comments from Fed chairman Jerome Powell and any changes to economic projections by policymakers,” said Hove.