Gold Prices Hold Near Recent Highs As Investors Await Fed Signals
The 24K variant was trading at Dh556.50 at the market open on Thursday, up from Dh554.25 at the close of the market on Tuesday. Among the other variants of the precious metal, 22K, 21K, 18K, and 14K, were trading at Dh515.25, Dh494, Dh423.50, and Dh330.25, respectively.
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Globally, spot gold was trading at $4,620 per ounce, up 0.49 per cent. Silver was also up 1.41 per cent, trading at $69.01 per ounce.
Vijay Valecha, CIO of Century Financial, said gold was holding steady after the US Treasury signalled plans to increase buybacks of long-dated bonds, which put pressure on the dollar.
“Thus, it is only natural for gold to consolidate after three back-to-back weekly gains,” Valecha said.
Gold briefly climbed close to $4,700 an ounce, marking its highest intraday level since mid-May, he said, adding that investors are now turning their attention to the Jackson Hole Symposium, where Fed Chair Kevin Warsh is scheduled to speak on Friday.
Valecha said the speech could offer clues on the central bank's approach to inflation and the broader interest-rate outlook.
Market positioning also points to continued optimism around gold, with options data showing increased demand for upside exposure in major gold exchange-traded funds. Money managers have also increased their holdings, while resilient central bank purchases and a narrowing gap between spot and futures prices are providing further support, Valecha said.
Geopolitical and trade tensions are adding to the appeal of gold as a portfolio hedge. The US has threatened economic measures against Iran and warned countries continuing to do business with Tehran of potential consequences, while trade tensions with Canada have also escalated.
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