UAE gold prices surged Tuesday morning in line with the global trend. As investors eagerly await key US economic data on inflation and the Federal Reserve interest rate decision. As markets opened, gold prices rose by one dirham per gram, with 24-karat gold costing Dh237.5 per gram. Global spot gold was trading at $1,960.97 per ounce, up slightly by 0.04% as of 9:15 UAE time.
Investors eagerly await US inflation data for market insights
Vijay Valecha, Director of Price Levels Insights. A strong CPI reading could have a significant impact on expectations for future rate hikes. It could prompt the Federal Reserve to hike rates again this month. Currently, Federal Funds futures indicate that the US Federal Reserve will leave interest rates on hold overnight in the 5.00-5 range with a 73.6% chance.25% at the end of Wednesday’s two-day session. Market participants are already anticipating this and expect a rate hike of 25 basis points at their July meeting. These expected rate hikes could put downward pressure on gold as it is a poorly performing asset.
Technical Analysis and Possible gold Prices Changes
On a technical level, gold prices are currently in the $1,938-$1,976 range. However, if the price breaks above $1,985. It could fuel the rally and potentially lead to further gains to $1,991, then $2,000 and into 2015. On the other hand, if the price breaks below $1,930. It could trigger corrections, potentially leading to a drop towards $1,912 and then $1,890.
The Importance of Monitoring Global Economic Conditions
It is crucial for investors to closely monitor global economic conditions as any significant changes, such as the development of inflation, interest rates or market sentiment, can have a direct impact on the gold prices.
Future Prospects and the Impact of Upcoming Economic Events The interaction of economic indicators, market sentiment and investor behavior will determine the direction of gold prices over the coming weeks and months.
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