Gold prices in Dubai edged lower on Tuesday after recording solid gains in the previous session, as investors turned cautious ahead of key economic data from the United States.
At 9am UAE time, the price of 24-karat gold stood at Dh606.5 per gram, down from Dh610.5 at Monday’s market close, when prices had jumped by nearly Dh7 per gram. Other variants also softened, with 22K gold trading at Dh561.5 per gram, 21K at Dh538.5, 18K at Dh461.5 and 14K at Dh360.0.
In the international market, spot gold was trading at $5,028.68 per ounce, down about 0.5 per cent. The dip comes as investors adopt a wait-and-see approach ahead of upcoming US jobs and inflation data, which could influence expectations around interest rates.
Despite the short-term pullback, analysts say the broader outlook for gold remains supportive. Prices extended their rally on Monday, climbing close to last week’s highs, and have stabilised after a recent correction, though volatility is expected to persist.
“Structural support for the metal remains firm,” said Abdelaziz Albogdady, market research and fintech strategy manager at FXEM. He pointed to continued central bank demand as a key factor, noting that China’s central bank extended its gold purchases for a fifteenth consecutive month in January. Ongoing inflows into gold-backed exchange-traded funds are also underpinning a bullish medium- to long-term outlook.
Geopolitical risks continue to provide additional support, with tensions between Russia and Ukraine remaining elevated despite diplomatic efforts. However, some near-term relief has emerged in the Middle East following US-Iran talks, which have
