2 days ago
UAE: Gold prices slip on Tuesday, but hover around Dh400 per gram
Gold prices were hovering around Dh400 per gram on Tuesday morning, dipping slightly at the opening of the markets.
The 24K variant of the precious metal was trading at Dh398.50 per gram, while 22K, 21K, and 18K were trading at Dh369.00, Dh354.00, and Dh303.25 per gram, respectively. Spot gold was trading at $3,308.05 per ounce, down 0.77 per cent.
Nadir Belbarka, an analyst at XMarabia, said the modest pullback comes against a mix of macro signals. "Friday's US nonfarm payrolls reading was a bit higher than forecast, as falling long-term unemployment suggests a still-strong labour market. That, in turn, reduced nearby inflation concerns as well as nearby pressure on monetary easing. However, political pressure is contributing volatility to rate expectations,' said Belbarka
US President Donald Trump's comments on Saturday, urging a 100-basis-point cut in rates and accusing Fed Chairman Jerome Powell of "costing us a fortune," have once again generated concerns over central banks being susceptible to more political interference.
'While Fed has ridden out such attacks in earlier cycles, markets are repricing risk on perceived central bank autonomy, fueling demand for gold as a geopolitical, as well as a monetary, hedge,' he added.
'It is a short-term gold tug-of-war. Firm economic news has moderated some of the need for a hawkish tone but has not eliminated dovish desires. Lacking a top-line economic release today, gold's trend is more dictated by sentiment than concrete facts.
"Any escalation in Trump policy speeches or more breakdown in trade hostility with China would push the metal to test resistance levels at $3,350 per ounce. Conversely, a strong Fed tone in forthcoming speeches would keep prices on a consolidating stance above levels of $3,300 per ounce, prior to mid-week CPI releases,' he added.
