Gold prices in Dubai decreased on Wednesday morning as the precious metal declined in the global market ahead of the publication of minutes from the US Federal Reserve meeting, scheduled for later in the day.
According to data from Dubai Jewellery Group, the price of 24-karat gold at the opening of the market on Wednesday was 524.25 dirhams per gram, which is lower than the 526.0 dirhams per gram recorded on Tuesday.
Other varieties of the precious metal traded slightly cheaper: 22-karat gold cost 485.5 dirhams per gram, and 21-karat gold was 465.5 dirhams per gram. In the UAE, prices for 18-karat gold fell below the key psychological threshold of 400 dirhams per gram, reaching the mark of 399 dirhams per gram. The most affordable option, 14-karat gold, traded at 311.25 dirhams per gram.
The spot gold rate stood at $4340 per ounce, reflecting a decrease of 0.56 percent. Earlier this week, the precious metal had exceeded the $4400 mark.
Rania Ghule, Senior Market Analyst at Mena in XS.com, noted that these price levels go beyond just the price, as they indicate a clear shift in the forces affecting the precious metal. She added that gold is now operating in a more favorable environment for restoring its bullish momentum.
However, according to Ghule, the further development of this trend will depend on the metal's ability to consolidate its gains and avoid a situation where geopolitical events become a source of inflationary pressure, forcing the Fed to adopt a stricter stance again. The most significant factor determining the current dynamics of gold prices is the change in expectations regarding US monetary policy. Recent economic data, including weaker-than-expected non-farm payrolls for July and more moderate inflation figures, have lowered the probability of a rate hike at the next Federal Reserve meeting.
