emirates7 - Gold prices hovered near Dh400 per gram on Tuesday morning, experiencing a slight decline as markets opened.
The 24-karat gold was priced at Dh398.50 per gram, while the 22K, 21K, and 18K variants were trading at Dh369.00, Dh354.00, and Dh303.25 per gram, respectively. Meanwhile, spot gold stood at $3,308.05 per ounce, reflecting a 0.77% drop.
According to XMarabia analyst Nadir Belbarka, this minor retreat reflects mixed macroeconomic indicators. He explained that Friday’s U.S. nonfarm payrolls report came in slightly above expectations, and a decrease in long-term unemployment points to continued labor market strength. This, in turn, eased short-term inflation fears and lessened the immediate need for monetary easing. However, political developments are adding uncertainty to rate projections.
Belbarka also referenced recent remarks by former U.S. President Donald Trump, who on Saturday called for a 100-basis-point rate cut and criticized Federal Reserve Chairman Jerome Powell for "costing us a fortune." These comments have reignited concerns over political influence on central banks.
“Although the Fed has previously weathered such criticisms, markets are now re-evaluating the risks to central bank independence,” Belbarka said, noting that this shift is increasing gold’s appeal as a hedge against both geopolitical and monetary instability.
He described the current gold market as being in a "short-term tug-of-war," where robust economic data has tempered the urgency for aggressive rate hikes but hasn’t completely quelled expectations for easing. With no major economic data due out today, investor sentiment is likely to drive short-term movements.
“Should Trump ramp up policy rhetoric or if U.S.-China trade tensions worsen, gold could test the $3,350 per ounce resistance level,” he said. “On the other hand, a firm stance from the Fed in upcoming speeches would likely keep gold prices hovering just above $3,300 per ounce until the release of mid-week CPI data.”
The 24-karat gold was priced at Dh398.50 per gram, while the 22K, 21K, and 18K variants were trading at Dh369.00, Dh354.00, and Dh303.25 per gram, respectively. Meanwhile, spot gold stood at $3,308.05 per ounce, reflecting a 0.77% drop.
According to XMarabia analyst Nadir Belbarka, this minor retreat reflects mixed macroeconomic indicators. He explained that Friday’s U.S. nonfarm payrolls report came in slightly above expectations, and a decrease in long-term unemployment points to continued labor market strength. This, in turn, eased short-term inflation fears and lessened the immediate need for monetary easing. However, political developments are adding uncertainty to rate projections.
Belbarka also referenced recent remarks by former U.S. President Donald Trump, who on Saturday called for a 100-basis-point rate cut and criticized Federal Reserve Chairman Jerome Powell for "costing us a fortune." These comments have reignited concerns over political influence on central banks.
“Although the Fed has previously weathered such criticisms, markets are now re-evaluating the risks to central bank independence,” Belbarka said, noting that this shift is increasing gold’s appeal as a hedge against both geopolitical and monetary instability.
He described the current gold market as being in a "short-term tug-of-war," where robust economic data has tempered the urgency for aggressive rate hikes but hasn’t completely quelled expectations for easing. With no major economic data due out today, investor sentiment is likely to drive short-term movements.
“Should Trump ramp up policy rhetoric or if U.S.-China trade tensions worsen, gold could test the $3,350 per ounce resistance level,” he said. “On the other hand, a firm stance from the Fed in upcoming speeches would likely keep gold prices hovering just above $3,300 per ounce until the release of mid-week CPI data.”