On the first trading day of the week, gold prices in Dubai experienced a slight decline, according to data released by the Dubai Jewellery Group. The price of the 24K variant of gold dropped by half a dirham per gram, trading at Dh281.25 on Monday morning, down from last week’s close of Dh281.75 per gram. Similarly, other variants of the precious metal also showed a decrease during early trade hours. At 9am UAE time, 22K gold was priced at Dh260.5 per gram, 21K at Dh252.25 per gram, and 18K at Dh216.25 per gram.
Globally, gold was quoted at $2,319.8 per ounce, marking a decrease of 0.22% in value. The decline comes amidst expectations that the US Federal Reserve may initiate interest rate cuts later in the year, spurred by subdued US inflation data. In May, the US core PCE (Personal Consumption Expenditures) index slowed in line with expectations, coupled with underwhelming personal spending figures and soft GDP numbers reported earlier in the week.
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Market strategist Yeap Jun Rong from IG noted, “The latest US inflation data, meeting consensus expectations, have reinforced market sentiment around the timing of potential Federal Reserve rate cuts. Investors are now closely monitoring economic indicators for cues on the Fed’s easing strategy expected to commence in September.”
The movement in gold prices reflects broader market sentiments influenced by US economic data, impacting global investment trends and strategies. Analysts and investors alike are poised to react to further developments in economic indicators that may influence gold’s trajectory in the coming weeks.
