Gold prices in Dubai experienced a downward shift on Friday, with 22K gold falling below the Dh500 per gram threshold. According to data from the Dubai Jewellery Group, 24K gold also saw a decline, trading at Dh539.25 per gram compared to the previous market close of Dh542, marking a loss of Dh2.75 per gram.
Reflecting the broader market trend, other gold variants also saw price adjustments. The 22K gold was priced at Dh499.25, while 21K traded at Dh478.75, 18K at Dh410.25, and 14K at Dh320 per gram. These price drops are being welcomed by local jewellers, who anticipate a surge in consumer demand ahead of the upcoming festive season, including celebrations for Navratri, Dussehra, and Diwali.
On the global stage, spot gold dipped by half a percent to reach $4,470 an ounce. Joseph Dahrieh, managing director at Tickmill, noted that investors are currently focused on upcoming US nonfarm payrolls data, which is expected to provide critical insights into potential interest rate hikes for September.
Dahrieh explained that softer August ADP payroll figures of 38,000—which fell below market forecasts—helped reduce the probability of a Federal Reserve rate hike from approximately 68 percent to 62 percent, providing some underlying support for gold. However, he cautioned that the metal remains vulnerable to downside risks following recent hawkish comments from Fed Chair Kevin Warsh and ongoing concerns regarding inflation driven by oil prices and US-Iran tensions.
Looking ahead, the nonfarm payrolls report remains the primary market driver. A weak jobs report could reduce expectations for rate hikes and potentially boost gold prices, whereas stronger data might lift yields and limit gains. Markets are also closely monitoring jobless claims, the ISM services survey, and any fluctuations in Middle East stability that could influence inflation risks.
In other regional developments, the Sharjah Ruler has approved a monthly living allowance of Dh20,000 for government employees and other eligible groups. Meanwhile, Sheikh Mohammed emphasized the UAE’s commitment to progress, stating that the nation does not wait for perfect conditions to deliver results. Additionally, diplomatic activity remains high, with the UAE President recently receiving a call from Donald Trump to discuss regional developments, during which Trump indicated a readiness to strike Iran again, noting that any renewed campaign would not be prolonged. The report also notes that stay up to date with the latest news.
Source: Khaleej Times
