Gold prices recover in Dubai after slipping below Dh300 per gram

emirates7 - Gold prices in Dubai rose on Thursday morning after briefly dipping below the Dh300 per gram mark on Wednesday. At 9 am UAE time, the 24K gold variant was priced at Dh302.0 per gram, up from Dh300.75 at the previous market close. On Wednesday evening, gold had momentarily dropped below the significant Dh300 threshold due to market pressure.

Other gold variants were also trading higher, with 22K at Dh279.75, 21K at Dh270.75, and 18K at Dh232.0 per gram. Globally, gold was trading at $2,494.44 per ounce, reflecting a slight 0.06 percent decrease.

Joseph Dahrieh, managing principal at Tickmill, commented that gold prices are under pressure as traders adopt a cautious approach ahead of more economic data expected this week and the upcoming Federal Reserve meeting. While there is anticipation of interest rate cuts, the scale of these cuts remains uncertain. Weaker-than-anticipated manufacturing PMI data has increased the likelihood of a more substantial rate cut at the next Fed meeting, which could lend additional support to gold prices if economic data further solidify these expectations.

Dahrieh highlighted that market attention is now on the upcoming job report, particularly the nonfarm payrolls (NFP) report, which will provide insights into the state of the labor market. He also noted that central banks have been steadily increasing their gold reserves in recent months, helping to maintain gold’s high value. Additionally, Dahrieh anticipates continued stock market sell-offs, which could push investors towards safe-haven assets like gold.