Gold prices surged by Dh3 per gram in Dubai at market opening on Wednesday, influenced by a global rise in gold prices above $2,400 per ounce.
Dubai Jewellery Group reported that the 24K variant started at Dh293.0 per gram, up from the previous night’s close of Dh290.0. Other variants also saw increases, with 22K at Dh271.5, 21K at Dh262.75, and 18K at Dh225.25 per gram.
On the global market, spot gold was trading at $2,418.36 per ounce at 9:15 am, marking a 0.38 percent rise.
Li Xing Gan, a financial markets strategist at Exness, noted in a Khaleej Times report that gold prices opened higher and could experience volatility as traders await more details on the Federal Reserve’s policy direction.
“The focus is on the outcome of the FOMC meeting on Wednesday and any clues from Fed chief Jerome Powell. Markets could also remain attentive to important US economic data, including the Non-Farm Payrolls (NFP) report on Friday, which could trigger further volatility for the dollar and impact gold prices in the near term,” Gan stated.
Gan added that market expectations for the Federal Reserve to start easing policy in September have pressured US Treasury bond yields, which could be beneficial for gold prices. He noted that interest rate cuts might support gold in the medium to long term, despite a decline in demand for jewelry in Q2. However, strong demand from central banks could help stabilize prices.