Gold prices experienced a significant drop in Dubai on Thursday morning, falling more than Dh5 per gram as global prices declined due to profit-taking by investors.
According to a Khaleej Times report, by 9 am, the price of 24K gold in Dubai was Dh287.75 per gram, down from Dh293.25 at the close of markets on Wednesday. The 22K, 21K, and 18K gold variants also saw decreases, trading at Dh266.5, Dh258.0, and Dh221.0 per gram, respectively.
Globally, spot gold was down nearly one percent, trading at $2,375.2 per ounce at 9:10 am UAE time. This decline came as investors booked profits ahead of key US economic data expected to influence interest rate decisions by central banks.
Eman AlAyyaf, CEO of EA Trading, highlighted the cautious approach of investors as they await important US economic and inflation reports. “These reports are crucial for understanding the Federal Reserve’s policy decisions. Key data includes the second-quarter GDP report on Thursday and the June PCE price index on Friday. The market expects rate cuts to begin in September, which could potentially support higher gold prices,” she explained.
AlAyyaf also noted that the slight retreat of the US dollar from its peak could bolster gold prices. Additionally, stronger anticipated demand in India, central bank purchases, and ongoing geopolitical tensions are expected to be significant factors supporting gold prices in the near future.