Gold prices have fallen almost 1% this week after hitting an all-time high on Tuesday.
Gold prices rose on Friday but are on track to fall for the week after falling from record highs as the US dollar and Treasury yields rebounded ahead of a speech from Federal Reserve Chairman Jerome Powell that may signal the outlook for monetary policy later today.
In the UAE, gold prices fell by AED1, dropping to AED302 for 24-karat gold and AED279.5 for 22-karat gold, while 270.75 for 21-karat gold and AED232 for 18-karat gold were at AED246.
Globally, spot gold was up 0.31% at $2,495.09 as of 5:13 GMT after hitting an all-time high of $2,531.60 on Tuesday, while US gold futures were up 0.53% at $2,530.05.
US Dollar Recovers
Gold prices have fallen almost 1 percent this week after hitting a record high on Tuesday. A recovery in the U.S. dollar and 10-year U.S. Treasury yields following an unexpected rise in unemployment weighed on gold prices by the end of the week. Federal Reserve officials on Thursday backed a September interest rate cut, citing easing inflation and signs of stabilization in the labor market.
Traders are fully pricing in a rate cut next month, with a 76% chance of a 25 basis points cut, according to the CME FedWatch tool. Lower interest rates tend to make non-yielding assets such as gold more attractive. Market attention has now shifted to remarks by Fed Chairman Powell at the Kansas City Fed’s Jackson Hole meeting, scheduled for 14:00 GMT.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.13% on Thursday.
Gold prices hovered around the $2,500 mark as talks began to ease geopolitical tensions in the Middle East.
Related article: Gold prices in the UAE fall slightly, US dollar strengthens, global interest rates fall, Fed rate cut expected
Other precious metals
In line with the rise in gold prices, precious metals markets also performed well: spot silver increased 0.71% to $29.19, platinum increased 0.77% to $950.90 and palladium increased 0.05% to $933.43.
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