24K gold holds above Dh550 in Dubai; analysts cite geopolitical tensions and Fed rate cut bets as key market drivers.
DUBAI — Gold prices eased in Dubai on Thursday, retreating from recent record highs as investors cashed in gains, though the metal remained resilient amid persistent geopolitical tensions and expectations of looser U.S. monetary policy.
The 24-karat variant traded at Dh553.0 per gram, down nearly Dh2 from the previous session, according to data from the Dubai Jewellery Group. Other purities also declined, with 22K at Dh512.25, 21K at Dh491, 18K at Dh421, and 14K at Dh328.25 per gram. Globally, spot gold was down 0.8% at $4,590 per ounce at 9 a.m. UAE time.
The modest pullback followed a sharp rally on Wednesday that pushed prices to all-time highs. Analysts attributed the earlier surge to a combination of factors, including softer U.S. inflation data that cemented expectations of two Federal Reserve rate cuts this year, and heightened geopolitical uncertainty from Iran to Ukraine.
“Softer-than-expected inflation has reinforced expectations for two rate cuts, while concerns over the Fed’s independence have unsettled markets and weakened the dollar,” said Vijay Valecha, chief investment officer at Century Financial. “Geopolitical risks continue to drive demand for safe-haven assets.”
Looking ahead, Valecha noted that gold faces technical resistance near $4,675, with support around $4,550.
Despite Thursday’s dip, market sentiment remains tilted in favour of gold as investors navigate a landscape of monetary policy shifts and persistent global instability.
