Gold continued to face downward pressure in Dubai on Friday morning, with 22K gold remaining firmly below the Dh500 per gram threshold.
The latest session saw 24K gold fall to Dh534.75 per gram, a drop of Dh3.75 from Thursday’s market close of Dh538.5 per gram.
Investors are growing cautious as persistent Middle East tensions threaten to send ripple effects across global energy markets, reignite inflation expectations, and complicate central bank monetary policy.
In such an environment, bullion, often seen as a safe haven, has paradoxically struggled to gain traction, partly due to a stronger U.S. dollar and expectations that interest rates may stay higher for longer, which diminishes the appeal of non-yielding assets like gold.
Looking ahead, analysts note that market focus will remain fixed on geopolitical developments in the region, along with the upcoming U.S. employment data.
Any escalation in the Middle East could trigger sudden safe-haven inflows into gold, but for now, the precious metal remains under pressure as traders await clarity on the Federal Reserve’s next policy move.
The jobs report, in particular, will be closely scrutinized for signs of a cooling labor market that might prompt rate cuts later this year.
Until then, Dubai’s gold market is likely to stay subdued, with 22K struggling to reclaim the psychological Dh500 level and broader sentiment hinging on whether geopolitical shocks or economic data provide the next decisive catalyst. Read more...
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