The first day of the week brought a slight dip to Dubai’s gold market, with prices opening lower compared to the previous week’s closing figures. The data, compiled by the Dubai Jewellery Group, revealed a decrease of Dh0. 50 per gram for the widely traded 24K variant. This translates to an opening price of Dh281. 25 per gram on Tuesday morning, down from Dh281. 75 per gram recorded at the conclusion of last week’s trading.
The price decline extended to other gold varieties as well. By 9 am UAE time, 22K, 21K, and 18K were trading at Dh260. 50, Dh252. 25, and Dh216. 25 per gram, respectively. This represents a decrease from their corresponding prices last week.
The global gold market mirrored the trend observed in Dubai, with a slight downward movement. The precious metal opened at $2, 319. 8 per ounce, reflecting a decline of 0. 22% compared to the previous day’s closing price.
Market analysts attributed the dip to a stronger US dollar and rising Treasury yields. Recent robust US jobs data, exceeding market expectations, fueled this trend. The data prompted investors to reassess their forecasts regarding potential interest rate cuts by the Federal Reserve. A stronger dollar often makes gold, a non-interest-bearing asset, less attractive to investors.
However, analysts also noted that the decline was relatively moderate. Terence Hove, a senior financial market strategist at Exness, pointed out that gold prices had stabilized to a certain extent after experiencing a steeper drop earlier. The price dip on Friday, influenced by the aforementioned jobs report, led to a 3. 5% decline, bringing gold to its lowest level since early April.
Looking ahead, market participants remained cautious due to several key events scheduled for the week. These events are expected to influence investor sentiment and potentially impact gold prices.
Despite the early Tuesday dip, Dubai’s gold market is known for its constant fluctuations. Investors are closely monitoring global economic developments and central bank policies, anticipating their influence on the price of the precious metal.
