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.
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.
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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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