UAE gold prices witness decline on Monday

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UAE Gold prices

The UAE News Report: There is a good news for gold buyers as the UAE gold prices fell half a dirham per gram at the opening of the markets in the UAE on Monday morning, according to the data at the Dubai Jewellery Group.

The Dubai Jewellery Group data revealed that Dubai gold prices of 24 karat gold was trading at Dh285.25 per gram at 9 am on Monday compared to Dh285.75 per gram it traded over the last weekend.

The trend for the other variants of UAE gold prices remained the same as 22K, 21K and 18K also opened lower at Dh264.0, Dh255.75 and Dh219.25 per gram, respectively. It was noticed that the gold prices had jumped on Friday to cross their late April levels in the UAE.

The bullion market regained part of the losses on Friday recorded during the latest price corrections, buoyed by renewed optimism for potential Federal Reserve interest rate cuts, said global head of education and research at CFI George Khoury.

Khoury  said, “The Federal Reserve remains cautious about reducing rates but markets are expecting a first cut in September. The upcoming inflation data is highly anticipated and will provide further clarity on the state of the US economy. Should this data indicate a downward trend in inflation, it could further enhance the appeal of gold as an investment.” At the same time, he mentioned that geopolitical risks could continue to support gold’s performance although the rapidly changing conditions in the Middle East constitute a source of risk. “Furthermore, recent ETF data highlights a robust demand for gold in Asian markets, especially from China, while central banks sustain an interest in the precious metal,” he added.