With 22K hitting Dh405 per gramme on Thursday, down Dh3 per gramme from its peak earlier this week, gold prices in Dubai are still declining gradually and steadily. At the same time, gold prices are still supported by lower US employment statistics and anticipation of future interest rate decisions.
In a similar vein, gold prices decreased on Wednesday as a result of heightened geopolitical tensions and predictions of a US Federal Reserve relaxation, which supported demand for safe haven assets. Additionally, Tuesday’s benchmark adjustment indicating that US employment growth was far slower than previously projected and last week’s dismal payroll data continue to support the metal. With a slim chance of a 50-basis-point change, markets are already completely pricing in a 25-basis-point rate drop at the Fed meeting next week.
Takieddine went on to say that the gold market has recently gained pace due to geopolitical uncertainties. While breaches into Polish airspace have sparked concerns of a wider escalation, rising tensions in the Middle East are endangering continuing ceasefire discussions.
Uncertainty still exists on the trade front after US President Trump called on the European Union to slap tariffs of up to 100% on China and India in an attempt to put pressure on Russia over the conflict in Ukraine.
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