Gold prices in Dubai rose Dh5 per gram at the opening of markets on Wednesday, recovering most of the losses recorded on Tuesday.
The Dubai Jewellery Group data showed 24K trading at Dh508.75 per gram on Wednesday, up from Dh503.75 per gram at the close of the markets on Tuesday.
Among the other variants of the yellow metal, 22K, 21K, and 18K prices in Dubai rose to Dh471.25, Dh451.75, and Dh387.25 per gram, respectively. The new variant 14K was trading at Dh302 per gram, up from Dh299 at the close of markets on Tuesday.
Spot gold was trading at $4,221.76 per ounce, up 0.77 percent at 9:10 am UAE time.
Gold fell to $4,198 per ounce on Tuesday, down 0.45 percent, after prices reached a five-week peak on Monday, amid mounting expectations of a US interest rate cut. According to Vijay Valecha, chief investment officer of Century Financial, the tepid, weaker PMI data reinforced the anticipation of a Fed rate cut next week, and CME FedWatch gave the likelihood at 87 percent.
“The weaker data favors the gold prices and the increase in Japanese bond yields curbs the downward pressure on the bullion as the yen rose against the dollar… Inflows into gold exchange-traded funds are rising, highlighting that the precious metal is continuing to win the stakes as the most preferred non-fiat asset,” he said. “On the daily charts, gold is holding above $4,200, which is strong support for the yellow metal,” Valecha added.
