Gold prices opened steady in the Dubai markets on Monday, the first trading day of the week, as investors adopted a cautious stance ahead of key economic reports and ongoing global uncertainties.
According to data from the Dubai Jewellery Group, the price of 24K gold inched slightly higher to Dh319.25 per gram, up from Dh319.0 at the close of last week’s market.
Other variants followed a similar trend, with 22K gold remaining steady at Dh295.5 per gram. Meanwhile, 21K and 18K gold saw marginal increases, opening at Dh286.25 and Dh245.25 per gram, respectively.
On the global stage, spot gold was trading at $2,638.94 per ounce, reflecting a 0.22 percent uptick, as investors continued to weigh economic signals.
The precious metal’s price movements come amid growing uncertainty over the future of U.S. monetary policy and the ongoing geopolitical tensions that are fueling demand for safe-haven assets.
Ruben Ferreira, head of Portuguese operations at FlowCommunity, explained that gold prices have been largely stable in recent weeks.
Investors are maintaining a cautious approach as they await the release of the U.S. nonfarm payrolls report, which is expected to offer insight into the health of the job market and may influence the Federal Reserve’s next moves on interest rates.
Currently, markets are pricing in a 68.5 percent probability of a 25-basis-point interest rate cut by the Federal Reserve.
Ferreira noted that although rate cuts are anticipated, Federal Reserve officials, including Chairman Jerome Powell, have expressed caution regarding the timing of such measures.
The possibility of higher rates for an extended period, especially in light of concerns about inflationary pressures from proposed tax and tariff policies, could weigh on gold prices.
However, Ferreira also highlighted several factors that continue to provide support for gold’s stability. Geopolitical tensions across various regions, including ongoing conflicts in the Middle East and Asia, are driving demand for safe-haven assets like gold.
As tensions rise in key global regions, investors are increasingly turning to precious metals as a hedge against uncertainty.
In addition to geopolitical risks, concerns about the potential impact of proposed trade tariffs on global economic growth are further sustaining interest in gold.
Heightened trade war risks, especially in relation to U.S.-China relations, have led to a reduction in appetite for riskier investments. As global economic growth remains uncertain, gold’s status as a reliable store of value has become even more attractive.
Despite these concerns, Ferreira cautioned that gold’s stability could be impacted by any abrupt changes in the economic landscape, including unexpected shifts in U.S. monetary policy or a resolution of geopolitical tensions.
For now, however, the precious metal continues to hold its ground, with investors closely monitoring developments on the global stage.
As the week progresses, market participants will be keeping a close eye on upcoming economic reports and the unfolding geopolitical situation, which could influence the direction of gold prices in the near future.
In the meantime, the precious metal remains a key asset for investors seeking refuge from the volatility that characterizes the current economic and political climate.