Gold Prices Dip Slightly in UAE Markets Amidst Mixed Economic Data
Gold prices in the United Arab Emirates (UAE) experienced a slight dip at the start of trading on Thursday. According to data from the Dubai Jewellery Group, 24K gold was trading at Dh231.25 per gram in the morning, down from Dh231.75 per gram at the previous night's close. Other gold varieties, including 22K, 21K, and 18K, opened at Dh214.0, Dh207.25, and Dh177.75 per gram, respectively, at 9 am local time.
Meanwhile, spot gold remained steady at $1,910.23 per ounce as of 9:35 am UAE time.
This dip comes after gold recently hit a nearly three-week low. Analysts like Rania Gule suggest that strong economic data for August has put downward pressure on gold prices. While the labor market had shown signs of weakness in recent weeks, it rebounded with robust reports in August. Gule believes that as long as economic data continues to present mixed expectations, market participants can anticipate further interest rate hikes.
Investors are closely monitoring the upcoming release of the US Consumer Price Index (CPI) data for August, which holds significant importance ahead of the Federal Reserve's policy meeting in September. Gule emphasizes that this data has the potential to provide additional insights into the inflation scenario in the United States. Such insights could significantly impact investor expectations regarding the US dollar and, consequently, influence gold trading.
In summary, gold prices in the UAE have seen a minor decline amid mixed economic data and the anticipation of important CPI figures from the US, which could shape the future direction of gold trading.
By: Vibha Kapoor
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