Gold prices in the UAE increase as global rates edge higher before crucial U.S. payroll data release

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Gold prices inched up on Friday as investors eyed the U.S. non-farm payrolls data, which could provide further signals on the Federal Reserve‘s policy stance. Despite the increase, gold prices were headed for their second straight weekly decline.

In the UAE, gold prices saw an increase, with 24-carat gold reaching AED279.25 per gram, while 22-carat gold increased to AED258.5. Twenty-one-carat gold rose to AED250.25, while 18-carat gold reached AED214.50.

Globally, spot gold saw a 0.13 percent increase to $2,306.89 per ounce, as of 5:34 GMT, and has lost more than 1 percent this week. Prices have declined by almost $130 after reaching a record high of $2,431.29 earlier in April. Meanwhile, U.S. gold futures saw a 0.32 percent increase to $2,317.00.

Factors impacting gold prices

Analysts attribute the recent decline in gold prices to diminishing geopolitical concerns and a reevaluation of interest rate expectations.

In addition, the Federal Reserve’s recent indications of potential future interest rate adjustments have added complexity to the market landscape. While leaning towards eventual rate cuts, the Fed remains attentive to inflation data, hinting at a cautious approach to monetary policy adjustments. According to the CME FedWatch Tool, Markets expect a 73 percent chance of an interest rate cut in November.

As anticipation builds ahead of the release of U.S. non-farm payrolls data, investors eagerly await insights into the labor market’s health and its potential implications for the Federal Reserve’s policy trajectory. A softer-than-expected report may provide support for gold prices, while a stronger report could exert downward pressure.

Other precious metals

In addition to gold prices, spot silver experienced a slight increase of 0.02 percent to $26.70. However, it experienced a weekly decline of around 2 percent. Conversely, platinum recorded a 0.58 percent increase, reaching $955.14, with palladium declining 0.20 percent to $933.63.

The fluctuations in gold prices reflect the current uncertainty in the market, with investors closely monitoring economic indicators and central bank policies for clues on future price movements. As geopolitical concerns diminish and interest rate expectations are reevaluated, the bullion market remains in a state of flux.

For more news on markets, stay tuned for updates.