Dubai 24-carat gold price today rises AED1.5 as market awaits key economic data

Economy ME

2 days ago

Gold prices increased on Wednesday as investors took advantage of the dip, although the gains were limited by the easing of U.S.-EU trade tensions. The market is now anticipating the upcoming U.S. core Personal Consumption Expenditures report for insights on interest rates.
In Dubai, the price of gold
rose
by AED1.50, with 24-carat gold priced at AED398.00. Meanwhile, 22-carat gold climbed to AED368.50, 21-carat gold reached AED351.75, and 18-carat gold increased to AED301.50.
Spot gold was up 0.3 percent at $3,308.99 an ounce as of 02:37 GMT (currently above $3,295), slightly recovering from a 1 percent decline in the previous session. U.S. gold futures increased by 0.2 percent to $3,308.30 (currently above $3,321).
Read more: Dubai's 24-carat gold price today drops above AED394, global rates near two-week high
Market sentiment eases
In a recent development,
U.S. President Donald Trump
backed down from his 50 percent tariff threat against the European Union, postponing its implementation until July 9 to allow for negotiations between the White House and the 27-nation bloc. 'Gold's dip below $3,300 saw it attracting some buyers. However, the broader market is still feeling generally upbeat now that US-EU trade tensions have eased, which is capping the extent of gold's upside run for now,' Reuters reported, citing Tim Waterer, chief market analyst at KCM Trade. 'If support in the $3,250-$3,280 region continues to hold, then gold is well-placed for potentially another run towards $3,400 if risk appetite fades.'
The market is now looking forward to the U.S. PCE data for April, due Friday, to evaluate the Federal Reserve's potential interest rate cut trajectory. Meanwhile, U.S. consumer confidence rebounded in May, ending a five-month decline, bolstered by a temporary truce in the U.S.-China trade war, according to the data. The Fed has maintained its policy rate unchanged at 4.25 percent to 4.50 percent since December, as officials await greater clarity on the economic and price impacts of Trump's tariffs. 'More decisive moves in gold one way or the other may need to wait until we get a read on the Nvidia results and U.S. Core PCE on Friday,' Waterer stated.
Spot silver remained steady at $33.31 an ounce, platinum rose by 0.4 percent to $1,084.07, and palladium decreased by 0.2 percent to $976.22.