24K gold drops Dh3.50 per gram but remains Dh42.50 higher than its August 1 price.
Dubai: Gold buyers in the UAE got some relief on Thursday morning as local prices slipped from their highest levels of August, although rates remained significantly higher than at the start of the month.
At 9:24 am, 24-karat gold was priced at Dh529.75 per gram, down Dh3.50 from Wednesday’s Dh533.25. Meanwhile, 22-karat gold fell Dh3.25 to Dh490.75 per gram, compared with Dh494 a day earlier.
The retreat has offered buyers some relief, but Thursday’s prices remain well above the levels seen at the beginning of August.
Prices remain well above August 1 levels
Thursday’s decline has only partially reversed the sharp gains recorded during the first half of the month.
Twenty-four-karat gold remains Dh42.50 per gram above its August 1 price of Dh487.25, while 22-karat gold is Dh39.50 higher than its opening-month level of Dh451.25.
Prices initially eased in the first few days of August, with 24-karat gold touching Dh485.50 on August 3 before embarking on a steady climb. The rate surpassed Dh500 on August 6, crossed Dh523 the following day and peaked at Dh533.25 on August 12.
The 22-karat rate followed a similar trajectory, rising from Dh449.50 on August 3 to Dh472.75 on August 6 and Dh485 on August 7, before reaching Dh494 on Wednesday.
Gold has gained around 9% month to date, with traders increasingly leaning towards further upside, according to Ahmad Assiri, Research Strategist at Pepperstone. He said dealer hedging could be adding to the recent price momentum as gold breaks out of the relatively narrow trading range seen last month.
Assiri also noted that while Middle East tensions remain in the background, market attention has shifted towards other developments, providing some near-term support for gold as flow dynamics increasingly influence price movements.
Global gold holds near $4,400
International gold prices held near $4,400 an ounce after softer-than-expected US inflation data eased pressure on the Federal Reserve to maintain a restrictive interest-rate stance.
Bullion rose as much as 0.9% and briefly touched a 10-week high before paring some of its gains. US consumer prices increased 0.1% in July from the previous month, while weaker-than-expected jobs data released last week also shaped expectations for the future path of US monetary policy.
Investors are now looking ahead to additional employment and inflation data for clues on the Fed’s next moves. Markets will also closely watch remarks from Fed Chairman Kevin Warsh at the Jackson Hole symposium later this month.
Higher interest rates typically weigh on gold because the non-yielding metal becomes less attractive compared with interest-bearing assets. Conversely, expectations of a less aggressive monetary policy stance can support demand for gold.
Middle East tensions remain in focus
Oil prices are on track for a weekly gain after months of volatility, as markets continue to monitor efforts by the US and Iran to end the conflict and reopen the Strait of Hormuz.
Gold has remained above $4,000 an ounce in recent weeks, supported by renewed investor demand and continued central-bank buying, including purchases by China.
This week’s rally also lifted gold above its 100-day moving average for the first time since April, signalling stronger momentum in the precious metal.
