Dubai experiences a significant drop in gold prices as the market anticipates signals from the Federal Reserve.
Gold prices in Dubai saw a notable decline on Tuesday, with a drop of Dh4 per gram by the end of the day. This sharp decrease has caught the attention of investors and buyers alike. According to data from the Dubai Jewellery Group, the 24K gold variant fell to Dh316 per gram by 8 pm, down from Dh320 at the market’s opening.
Variants Experience Major Declines
In addition to the drop in 24K gold, other gold variants also experienced considerable decreases. The price of 22K gold fell to Dh292.5 per gram, while 21K traded at Dh283.25 per gram. The 18K variant saw a drop to Dh242.75 per gram. These reductions represent some of the most significant price drops seen in Dubai’s gold market in recent times.
Global Factors Influencing Gold Prices
The decline in Dubai’s gold prices is in line with global trends. Spot gold lost more than 1% on Tuesday, trading at $2,614.16 per ounce by the evening, marking a 1.1% decrease. The recent employment data from the United States has reduced the likelihood of a larger interest rate cut by the Federal Reserve. As a result, investors are eagerly awaiting the minutes of the Federal Reserve’s latest policy meeting for further market direction.
In September, the Fed reduced interest rates by half a percentage point for the first time since the pandemic. This decision is influencing the global gold market, with many traders uncertain about the next move.
Read more:
Market Analysts’ Insights
Chris Weston, the head of research at Pepperstone, commented on the current gold market. He explained that as the price consolidation continues, the likelihood of a dramatic price movement within the range of $2,685 to $2,624 increases. “These levels define the recent range,” Weston noted. “While we can complicate matters by analyzing the various factors traders focus on, the technical set-up and price action summarize all beliefs and behaviors.”
He added that it might be prudent for traders to wait for the market to force a move. “A powerful breakout, when it happens, could set the tone for future trading trends, making it a move worth chasing.”
What to Expect Next
With global economic factors in play and investors awaiting the Federal Reserve’s next steps, the gold market is on edge. As prices fluctuate, those in Dubai looking to invest in gold should keep a close eye on both local and international developments.
In the coming days, market trends will likely shift as new data and signals from the Federal Reserve emerge. For now, Dubai’s gold market remains a reflection of global uncertainty, with potential for further price changes.