Dubai gold slips Dh0.25 to Dh404 as global prices rise
US and China extend tariff truce for another 90 days
DUBAI’s gold market opened Wednesday with 24-karat priced at Dh404.00 per gram, a Dh0.25 drop from Tuesday’s Dh404.25.
The 22-karat rate stood at Dh374.00, while 21K traded at Dh358.75 and 18K at Dh307.50.
On Tuesday, 24K was Dh404.25, 22K Dh374.50, 21K Dh359.00, and 18K Dh307.75. Monday’s rates were higher, with 24K at Dh406.75, 22K at Dh377.00, 21K at Dh361.25, and 18K at Dh309.50. Despite recent declines, prices remain well above last week’s averages and below Saturday’s peak of Dh409.25.
What’s driving global gold prices?
In global markets, spot gold was up 0.2% at $3,351.46 per ounce as of 0447 GMT, supported by a weaker dollar after US inflation data boosted expectations for a September interest rate cut. US gold futures for December delivery held at $3,399.60.
The dollar index extended losses, making gold more attractive to holders of other currencies. US Consumer Price Index data showed a 0.2% rise in July, after a 0.3% increase in June, with annual inflation now at 2.7%.
Trade tensions
Trade sentiment improved after the United States and China extended their tariff truce by 90 days, preventing new duties on hundreds of billions of dollars in goods.
Investors are also watching US-Russia talks later this week over the Ukraine conflict, ahead of a planned meeting between Presidents Donald Trump and Vladimir Putin in Alaska.
Markets are pricing in a 90% probability of a Federal Reserve rate cut in September, with at least one more by year-end. Non-yielding gold typically benefits from lower interest rates.
Other precious metals
Other precious metals saw mixed movement, with spot silver rising 0.8% to $38.17 per ounce, platinum easing 0.1% to $1,335.82, and palladium flat at $1,129.37.