Gold prices in the UAE saw an increase on Tuesday morning, following the global trend of rising rates. This rise comes as the US dollar and Treasury yields took a step back from their recent highs, ahead of significant US inflation and job data scheduled for this week.
Based on data from the Dubai Jewellery Group, the 24K variant of gold was trading at Dh233.0 per gram, a rise from Dh232.25 per gram seen at the previous day’s market close. Similarly, the rates for 22K, 21K, and 18K gold also showed an increase, starting the day at Dh215.75, Dh209.0, and Dh179.0 per gram respectively, as of 9 am UAE time on Tuesday.
At 9:20 am UAE time, spot gold was up by 0.12%, reaching $1,923.59 per ounce.
Saxo Bank observed that gold maintained its stability despite a selling attempt on Friday. This stability followed statements from the US Federal Reserve chairman, Jerome Powell. Powell emphasized the Fed’s long-term goal of maintaining 2% inflation, while also indicating the Fed’s cautious approach and not ruling out potential rate hikes.
Saxo Bank projected that the first rate cut might now occur in June of the next year, one month later than previously anticipated. They also highlighted resistance levels for gold at $1,924 and $1,936.
Daniel Dubrovsky, a contributing senior strategist at dailyFX, noted that gold prices have been on the rise in recent weeks. He added that retail traders have been gradually increasing their cautious bets against gold’s rise.