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Monday, March 4, 2024

Gold Prices Experience Significant Decline in Early UAE Trading

Gold Prices In the opening hours of Thursday’s market session, gold prices in the UAE experienced a notable decline, dropping by more than Dh2 per gram. Data from the Dubai Jewellery Group revealed that 24K gold was trading at Dh244.0 per gram, marking a significant decrease of Dh2.25 from the previous night’s closing price of Dh246.25 per gram. Other variants of gold also witnessed declines, with 22K opening at Dh226.0 per gram, 21K at Dh218.75, and 18K at Dh187.5.

Global Trends and Market Dynamics: Gold Prices

Spot Gold Records Dip in Global Market

On the global front, the spot gold market registered a trading value of $2,016.0 per ounce at 9:10 UAE time, hitting a nearly one-week low of $2,011.06 in the preceding session.

Analyst Insights: Waiting on the Fed and Economic Data

Rania Gule, a market analyst at XS.com, pointed out that the current price of gold is within a narrow trading range as traders await more clarity on the potential timing of interest rate cuts by the Federal Reserve. She emphasized the significance of key releases from the US economic calendar, including the fourth-quarter Gross Domestic Product (GDP) on Thursday and the Personal Consumption Expenditures (PCE) price index on Friday, which could lead to heightened volatility in gold prices upon publication.

Shifting Investor Sentiment and Global Factors

Investors have tempered their expectations for immediate monetary easing by the Federal Reserve, considering data indicating the resilience of the US economy. Federal Reserve officials have underscored the need for additional inflation data before deciding on interest rates. The resulting strength of the US dollar, reaching its highest level since December 13 at 103.70 points, directly impacts gold prices. However, geopolitical tensions and concerns about an economic slowdown in China may continue to support gold as a safe-haven asset.

Investor Caution and Market Monitoring

Gule noted that investors appear hesitant to establish strong directional expectations, choosing to closely monitor the markets, particularly in anticipation of key US economic data.

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