(MENAFN- Khaleej Times)
Gold prices in Dubai continued their upward journey for the second consecutive day in early trade on Tuesday.
According to Dubai Jewellery Group data, the 24K variant of the precious metal rose half a dirham per gram to Dh298 per gram at the opening of the markets on Tuesday. It gained Dh2.5 per gram on Monday, taking its gains to Dh3 per gram in the past 24 hours.
Among the other variants, the 22K, 21K and 18K opened higher at Dh276, Dh267.25 and Dh229 per gram, respectively.
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
Globally, spot gold was trading at $2,459.53 per ounce, down 0.65 per cent.
Joseph Dahrieh, managing principal at Tickmill, said gold continues to recover from last week's sell-off and in anticipation of US inflation data. The upcoming Producer Price Inflation (PPI) on Tuesday and the Consumer Price Index (CPI) on Wednesday are expected to provide clues regarding the Federal Reserve's next moves.
“Higher-than-expected US inflation data could put some pressure on gold as interest rate cuts expectations could recede. Conversely, cooling inflation could bolster expectations of a softer monetary policy and help drive gold prices to the upside. Additionally, geopolitical tensions, especially in the Middle East, continue to support gold. With no immediate resolution in the conflict in sight, investors could continue to flock toward gold,” he said.
Chris Weston, head of research at Pepperstone, said gold remains stuck between $2,480 and $2,450, with the 50-day moving average at $2,473 also offering near-term downside support. However, a big picture overview shows a market in balance and looking for a spark to promote some clarity and steer on for direction.
“The near-term catalysts that stand out this week would likely be the US CPI print, and US retail sales report – should we see a US core CPI print above 0.35 per cent month-on-month and cries of 'stagflation' may be heard more liberally, and this could initially weigh on gold, as the US dollar spikes higher. Conversely, a reading below 0.2 per cent and there will be a re-focus on how far behind the curve the Fed really are, with the market leaning closer to a 50bp cut in the September FOMC meeting,” said Weston.
ALSO READ:
Asian markets mixed as focus turns to US inflation data
MENAFN13082024000049011007ID1108551138
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.