Dubai's Early Trade Sees Stable Gold Prices in the UAE

Investors were eagerly anticipating insights into interest rate considerations from US Federal Reserve officials scheduled to speak throughout the week.

In the United Arab Emirates (UAE), the price of gold exhibited stability during Tuesday's morning trading session, closely mirroring the global pricing trends. Market participants were keenly observing for additional indications regarding the course of action that the US Federal Reserve might adopt.

According to data provided by the Dubai Jewellery Group, the price of 24K gold stood at Dh234.75 per gram at the market's opening on Tuesday, maintaining its equilibrium compared to the closing rate of the previous night. Concurrently, 22K, 21K, and 18K gold varieties commenced the day at Dh217.25, Dh210.5, and Dh180.25 per gram, respectively.

At 9:13 am UAE time, the spot gold price demonstrated a marginal uptick of 0.03 percent, reaching $1,938.34 per ounce.

Investors were particularly focused on obtaining clues concerning interest rates, a topic of considerable interest among US Federal Reserve officials scheduled to deliver speeches this week.

Daniel McCarthy, a strategist at dailyFX, noted that the price of the precious metal, colloquially referred to as the "yellow metal," continued to hover around the $1,940 mark as Tuesday's trading session commenced. Market headwinds, he pointed out, could potentially be counteracted by geopolitical factors, which have contributed to reduced volatility in the precious metals sector.

McCarthy emphasized the ascent of US real yields, which had persisted throughout 2023 and recently reached a 14-year pinnacle at the 10-year maturity point, surpassing the 1.90 percent threshold. He drew comparisons to historical data, highlighting that the last instance of real yields at this elevated level occurred in 2009 when spot gold was priced below $1,000 per ounce. Additionally, he referenced the year 2018, when real yields approached approximately 1.0 percent, coinciding with a period when spot gold was valued at less than $1,300 per ounce.

 

Source: khaleejtimes.com