Globally, spot gold was down 0.19% to $2,406.8 per ounce as of 9:10 am.
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Published date: Monday, July 22, 2024 at 9:40 AM
Last updated: Monday, July 22, 2024 at 9:43 AM
Gold prices in Dubai rose early in the morning on the first trading day of the week after prices fell in the final few trading sessions of last week.
In the UAE, the price of 24K precious metal rose by 0.5 dirhams per gram to 291.25 dirhams as of 9 am from last week’s closing price of 290.75 dirhams per gram. Gold prices fell by about 8 dirhams per gram in Dubai on Friday.
Similarly, 22K, 21K and 18K also opened higher at AED 269.75, AED 261.0 and AED 223.75 per gram respectively.
Globally, spot gold was down 0.19% to $2,406.8 per ounce as of 9:10 am.
Chris Weston, head of research at Pepperstone, said U.S. President Joe Biden dropping out of the Democratic presidential nomination could be a marginal headwind for gold. Few are trading on that position right now, but a weaker dollar is supporting markets across Asia.
“Kamala Harris hasn’t yet been officially nominated and Obama hasn’t endorsed her, so it could still be a crowded race, but I feel the market is right in predicting Harris as the heavy favorite to win the position. I’ve already heard over $50 million pledged from Democratic donors and the news flow seems to have reinvigorated the Democratic outlook,” Weston said.
He said there was still enough uncertainty to limit the decline in gold prices, and that economic trends were a key variable influencing expectations of interest rate cuts and therefore gold prices.
“But if you look at the checklist of medium-term factors that are really bullish for gold, the possibility of Harris boosting Democrat prospects in November reduces the reason to hold gold as a hedge against a Trump/Vance hawkish foreign policy and huge budget deficits over the next decade,” Weston added.