Gold prices saw a slight increase after falling to a two-week low on Wednesday as investors awaited U.S. inflation data for clues on the timing of the Federal Reserve‘s interest rate cut.
In the UAE, gold prices saw an AED1.75 decline with 24-carat gold falling to AED278.75 per gram, while 22-carat gold declined to AED258. Twenty-one-carat gold declined to AED249.75 while 18-carat gold reached AED214.
Globally, spot gold saw a 0.01 percent decline to $2,298.14 per ounce, as of 5:58 GMT, losing over 10 percent in the last 30 days. Meanwhile, U.S. gold futures lost 0.13 percent to $2,310.20.
Strong dollar impacts bullion
The dollar neared an eight-week high, making gold prices more expensive for other currency holders. Meanwhile, benchmark 10-year treasury yields also held firm.
Data due this week include the U.S. first-quarter gross domestic product estimates, which are due at 12:30 GMT, and the personal consumption expenditures (PCE) inflation data due on Friday. While gold is considered an inflation hedge, higher rates increase the opportunity cost of holding non-yielding assets.
Gold prices remain impacted by the Fed’s policy decisions and rising geopolitical tensions. Thus, the primary factor impacting gold prices long term is the risk-on sentiment as the global economy recovers.
Read: Saudi Arabia issues $1.17 billion in sovereign sukuk across three tranches in June
Other precious metals
In line with the decline in gold prices, spot silver was down 0.04 percent to $28.75. Platinum declined 0.63 percent to $1,004.39 while palladium lost 0.08 percent to $928.02.
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