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July 7, 2024
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UAE gold prices rise, global rates hit one-week high on rate cut hopes


Gold prices have recovered from their 6 percent decline from their record high last month

Gold prices rose to their highest in a week on Thursday as softer U.S. economic data raised hopes for an interest rate cut by the Federal Reserve this year.

In the UAE, gold prices saw almost an AED2 increase with 24-carat gold rising to AED283.50 per gram, while 22-carat gold inched up to AED262.50. Twenty-one-carat gold rose to AED254 while 18-carat gold increased to AED217.75.

Globally, spot gold saw a 0.49 percent increase to $2,340.87 per ounce, as of 5:11 GMT. Meanwhile, U.S. gold futures gained 0.53 percent to $2,355.15.

U.S. economic data

Last week’s U.S. economic data revealed a moderation in the labor market and price pressures in addition to softer-than-expected retail sales, signaling slower economic activity in the second quarter of 2024 amid fluctuations in gold prices.

The Federal Reserve now awaits more insights into inflation’s trajectory as markets largely expect one or two interest rate cuts this year. Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold, thus, further supporting their prices.

The market’s focus now shifts to the U.S. weekly jobless claims data in addition to the flash purchasing managers’ indexes on Friday for more insights into the Fed’s rate cut timing.

Gold prices have recovered from their 6 percent decline from their record high last month, recording a 2.21 percent decline in the past 30 days.

Read: What are blue chip stocks and why you should invest in them

Other precious metals

Similar to the rise in gold prices, spot silver rose 1.81 percent to $30.30. Platinum gained 0.06 percent to $980.85 while palladium rose 0.72 percent to $911.27.

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