Gold prices in Dubai saw a slight decline on Wednesday morning, with a drop of Dh1.5 per gram. The 24K variant of gold was trading at Dh298.0 per gram at 9 a.m. UAE time, down from Dh299.5 per gram the previous evening. Other gold variants also experienced decreases, with 22K trading at Dh276.0, 21K at Dh267.25, and 18K at Dh229.0 per gram.
Globally, spot gold prices fell by 0.08 percent, trading at $2,462.08 per ounce. According to Rania Gule, senior market analyst at XS.com, gold managed to recover most of its weekly losses with a recent gain, trading at $2,463 on Tuesday. However, she noted in a Khaleej Times report that the market remains volatile and has not fully overcome its recent challenges.
Market analysts are closely watching China’s potential liquidity injection, which historically occurs in August and could impact gold prices. The People’s Bank of China may delay liquidity measures until after the U.S. Federal Reserve’s anticipated interest rate cuts, expected in mid-September. Geopolitical developments are also contributing to the uncertainty in the gold market.