Gold prices declined on Tuesday as investors awaited the release of U.S. economic data, which will provide insight into the size of the Federal Reserve’s expected interest rate cut this month.
In the UAE, gold prices declined with 24-carat gold inching down to AED302.25 and 22-carat gold declining to AED279.75. Meanwhile, 21-carat gold reached AED270.75 and 18-carat gold hit AED232.25.
Globally, spot gold declined 0.08 percent to $2,495.11 as of 5:10 GMT. Meanwhile, U.S. gold futures fell 0.22 percent to $2,526.05.
The dollar index rose 0.11 percent to 101.76, near a two-week high, which made bullion less appealing for other currency holders.
U.S. economic data
Analysts said that gold prices fell from around their all-time high due to a lack of positive factors in recent days. With the upcoming release of new sets of data, gold prices may rally if the reports signal a weaker economy and the Fed considers a larger rate cut.
Market focus this week shifts to Friday’s U.S. August non-farm payrolls report, the ISM surveys, JOLTS job openings, and the ADP employment report.
Gold remains a hedge against geopolitical and economic risks, with additional support from imminent Fed rate cuts and ongoing emerging market central bank buying. Bullion is traditionally a safe asset, particularly amid turmoil. Moreover, it tends to thrive in a low-rate environment.
Other precious metals
Amid the decline in gold prices, the precious metals market saw a downturn on Tuesday. Spot silver dipped 0.20 percent to $28.44 while platinum lost 1.12 percent to $919.64. Palladium also recorded a decline of 0.84 percent to $970.50.
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