On the first trading day of the week in the UAE, gold prices dropped by one dirham per gram. According to data from the Dubai Jewellery Group, 24K gold was trading at Dh240.25 per gram at the market’s opening, compared to last week’s closing price of Dh241.25 per gram.
Other gold variants, including 22K, 21K, and 18K, also opened lower, with prices at Dh222.5, Dh215.5, and Dh184.75 per gram, respectively, at 9 am local time.
On the global front, spot gold decreased by 0.26%, reaching $1,983.45 per ounce by 9:15 am UAE time. This stability in gold prices follows weaker-than-expected US jobs data, which raised hopes that the Federal Reserve might not raise interest rates further, leading to lower dollar and bond yields.
Analyst Warren Venketas from dailyFX mentioned that the weaker US jobs report contributed to gold’s strength. The report indicated a higher unemployment rate and lower wage growth, suggesting the beginning of a weaker job market.
This trend could be welcomed by the Federal Reserve amid concerns about tight monetary policy and potential recessionary and stagflation risks. In this environment, gold becomes more attractive to investors as the opportunity cost of holding gold decreases.
