Gold prices in Dubai have experienced a decline for the second consecutive day as of September 18, 2024, following a peak of Dh313.5 per gram on September 16, 2024. The 24K gold variant was trading at Dh311 per gram, reflecting a decrease of Dh2.5 since its recent high. In the global market, spot gold was recorded at $2,568.49 per ounce, down 0.21% from previous levels. Analysts attribute the fluctuations in gold prices to expectations surrounding the U.S. Federal Reserve's potential interest rate cuts, with predictions of a 50 basis point reduction impacting market dynamics. Marc Pussard from APM Capital noted that the weaker dollar and anticipated monetary policy easing have enhanced gold's attractiveness as an investment. Chris Weston from Pepperstone highlighted the prevailing uncertainty in gold price movements amid these potential rate cuts, indicating that market participants are closely monitoring economic indicators and Fed communications for further direction.
In the UAE, gold prices had previously risen, with 24-carat gold reaching AED294 per gram and 22-carat gold at AED272.25. The rise was driven by comments from Fed Chair Jerome Powell, who expressed confidence in inflation returning to the central bank's target of 2 percent. Ongoing political risks in Europe and uncertainty regarding the U.S. presidential election have also contributed to gold's status as a safe-haven asset. Market attention remains focused on upcoming U.S. retail sales data and comments from Fed governors, which could further influence policy expectations. The current market sentiment reflects a 93 percent chance of an interest rate cut in September, according to the CME Fedwatch Tool.
Gold prices in Dubai had previously surged, with 24K gold reaching AED292.75 per gram at the opening of the markets on Wednesday. Analysts expect gold prices to remain elevated due to geopolitical tensions and higher demand from countries like India, where gold and silver imports from the UAE have significantly increased. The reduction in import duties in India is expected to make purchasing gold in Dubai more attractive, although Dubai's established reputation as a global jewelry hub continues to draw buyers. As the market adapts to these changes, the outlook for gold remains closely tied to economic developments and investor sentiment.