Gold prices primarily fell on Monday as hopes of another interest rate cut by the US Federal Reserve in December faded. Prices dipped below $4,000 when markets opened on Tuesday.

Globally, spot prices fell to $3971.26 per ounce at 10am UAE time, while silver stood at $47.56. In Dubai, the price of 24K rose slightly to stand at Dh480.25 on Tuesday morning. Similarly, 22K, 21K and 18K stood to Dh444.75, Dh426.50, and Dh365.25 per gram, respectively.

However, analysts are expecting the yellow metal to go up again on the back of a weak ISM Manufacturing PMI print. The report on the performance of US manufacturers put the PMI at 48.7 - much lower than the expected 49.4 - indicating that the US economy is slowing down.

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According to Nadir Belbarka analyst at XMArabia, the weak PMI is a“gut punch” for the Feds and signals that they should cut rates in December. This could“supercharge” gold's safe haven appeal.

“The USD's getting hammered, down nearly 0.6 per cent already, with more pain likely if risk-off vibes kick in,” he said.“Meanwhile, gold's gunning for $4,100 this week as inflation fears fade and real yields crumble. Traders are all-in on bullion now - this soft data just turned gold from 'nice hedge' to 'must-own asset' in a heartbeat.”

Last month, gold rallied to record prices before falling sharply again towards the end of the month. According to analysts, they don't expect any major movements for the rest of the year.

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