Gold prices experienced a modest increase in Dubai on Tuesday, with 24K gold rising to Dh480.25 per gram, while 22K, 21K, and 18K gold stood at Dh444.75, Dh426.50, and Dh365.25 per gram, respectively. This slight uptick comes after a dip in global spot prices, which fell to $3,971.26 per ounce at 10am UAE time, with silver priced at $47.56. The decline in gold prices on Monday was attributed to fading hopes of another interest rate cut by the US Federal Reserve in December, causing prices to drop below $4,000 at the start of Tuesday’s trading session. However, analysts are now predicting a potential surge in gold prices, driven by a weak ISM Manufacturing PMI report. The PMI stood at 48.7, significantly lower than the expected 49.4, signaling a slowdown in the US economy. Nadir Belbarka, an analyst at XMArabia, described the weak PMI as a ‘gut punch’ for the Federal Reserve, suggesting that a rate cut in December could ‘supercharge’ gold’s appeal as a safe-haven asset. Belbarka also noted that the US dollar is under pressure, down nearly 0.6%, with further declines likely if risk-off sentiment intensifies. He anticipates gold could reach $4,100 this week as inflation fears subside and real yields decline. Last month, gold prices rallied to record highs before sharply falling towards the end of the month. Analysts expect no major movements in gold prices for the remainder of the year.
Dubai: Gold prices rise slightly; analysts say global costs could jump over $4,100
