Gold Prices Dip in UAE Markets Amidst US Inflation Data Surge

This shift in gold prices comes in response to last week's release of stronger-than-expected US inflation data, which has had a profound impact on investor expectations and market dynamics

Gold prices in the United Arab Emirates witnessed a slight decline at the commencement of trading this Monday. The 24K variant of the precious metal opened at Dh260.0 per gram, marking a decrease of more than Dh1 compared to last week’s close, according to data provided by the Dubai Jewellery Group.

This downward trend was echoed across other variants, with 22K opening at Dh240.75, 21K at Dh233.0, and 18K at Dh199.75 per gram.

Advertisement

Globally, the spot gold price saw a 0.43 per cent decline, settling at $2,147.3 per ounce at 9.20 am UAE time, indicating a broader trend reflecting the market sentiment.

This shift in gold prices comes in response to last week’s release of stronger-than-expected US inflation data, which has had a profound impact on investor expectations and market dynamics.

The unexpected uptick in inflation figures has injected a sense of uncertainty into the market, prompting a reassessment of expectations regarding the Federal Reserve’s monetary policy.

This development has interrupted gold’s three-week winning streak as traders weigh the potential implications of future interest rate cuts.

George Pavel, General Manager at Capex.com Middle East, commented on the situation, stating, “The unforeseen uptick in inflation has introduced a sense of uncertainty into the market, fueling price correction risks. At the same time, the resurgence in treasury yields last week exerted additional downward pressure on gold prices.”

Despite these challenges, market sentiment remains optimistic about the prospect of interest rate cuts, with expectations for their initiation as early as June.

Advertisement

The trajectory of the gold market in the coming weeks is expected to be heavily influenced by the outcome of the Federal Open Market Committee (FOMC) meeting scheduled for this week.

Investors eagerly await the Federal Reserve’s economic projections and the subsequent commentary from its officials for insights into the central bank’s stance on monetary policy.

Any indication of a hawkish tone could further dampen gold prices as investors adjust their positions in response to evolving market conditions.

As uncertainty looms over the global economic landscape, gold continues to serve as a barometer of market sentiment and a safe-haven asset for investors seeking refuge from volatility.

The coming days will undoubtedly be critical for the precious metal as it navigates through shifting market dynamics and macroeconomic developments.

In conclusion, while gold prices may experience fluctuations in the short term, the underlying drivers of demand for the precious metal remain intact, reinforcing its status as a resilient asset in times of economic uncertainty.

 

This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members

Tariq Saeed

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Read More

Abu Dhabi announces free parking and toll fees during Eid Al Fitr holiday

The transport authorities of Abu Dhabi have announced the business hours for all its services during the holiday of Eid Al Fitr. Motorists in the city can get up to eight days of free parking during the long festival holiday.

St Kitts and Nevis: PM Terrance Drew addresses regional symposium on crime and violence

The Prime Minister and Minister of Health of St Kitts and Nevis – Dr Terrance Drew, attended the Regional Symposium meeting held in Trinidad and Tobago yesterday, April 17, 2023.

Abu Dhabi Police alerts parents about dangers of leaving children in vehicles during summer

Abu Dhabi Police have alerted the public regarding the dangers of leaving their children in hot vehicles during the summer season.

Recent

Saint Lucia: Dy PM Ernest Hilaire sends Labor Day wishes to fellow citizens

Ernest Hilaire - The Deputy Prime Minister of Saint Lucia, has extended greetings and warm wishes to his fellow Saint Lucians on the occasion of World Labour Day, 2023.

UAE: 296 new COVID cases, 0 deaths, 980 recoveries recorded

The United Arab Emirates recorded a total of 296 additional cases of the COVID-19 virus today, on March 14, 2022, according to the data shared by the UAE Ministry of Health and Prevention. 

“Dubai’s Hindu temple is dream come true to many Indians”, says Businessman, Vasu Shroff

The Magnificent and massive Hindu Temple about to be inaugurated this week was a dream of many Hindu families residing in UAE.
admin