UAE: Gold prices continue to rise

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Gold prices inched higher further at the opening of the markets on Thursday after gaining Dh2 per gram yesterday.

The Dubai Jewellery Group data showed 24K trading at Dh265.75 per gram on Thursday morning as compared to Dh265.5 per gram at the close of the markets on Wednesday. Among the other variants of the yellow metal, 22K opened at Dh246.25, 21K at Dh238.25 and 18K at Dh204.25 per gram.

Spot gold was trading at $2,195.24 per ounce, up 0.19 per cent as investors digested comments from US Federal Reserve Governor Christopher Wallet on the interest rate cuts.

George Khoury, Global Head of Education and Research at CFI, said gold surged higher and could resume its bullish momentum as investors continue to expect the Federal Reserve to soften its monetary policy.

“Chicago Fed President Austan Goolsbee hinted at the possibility of three rate cuts this year, contrasting with Fed Governor Lisa Cook’s cautious approach toward rate adjustments. The interest rate cuts could support gold prices as they materialize over the long term,” he said.

In this regard, investors could brace for crucial US inflation data on Friday and could take a more cautious approach.

“The data could significantly influence the Federal Reserve’s monetary policy stance. Gold prices could climb even higher if inflation readings come weaker-than-expected. However, the market remains on an uptrend although US durable goods orders surpassed expectations in February and weighed on sentiment to a certain extent and on gold prices yesterday. In addition, gold purchases from central banks could continue to provide a floor for the market,” said Khoury.