Gold prices experienced a modest uptick on Monday as investors monitored upcoming U.S. inflation data and awaited comments from Federal Reserve officials for indications on future interest rate adjustments.
In the UAE, the price of 24-carat gold increased by AED0.5 to AED281.5 per gram. Similarly, 22-carat gold edged up to AED260.75, while 21-carat and 18-carat gold saw increases to AED252.25 and AED216.25, respectively.
Internationally, spot gold rose by 0.24 percent to $2,324.89 per ounce as of 5:04 GMT, reflecting ongoing market sentiment. Concurrently, U.S. gold futures gained 0.27 percent, reaching $2,337.55.
The marginal 0.02 percent rise in the dollar index contributed to the increase in gold prices, rendering them more costly for holders of alternative currencies.
U.S. Economic Developments Impacting Gold Prices
Recent reports from the U.S. indicated a notable increase in business activity to a 26-month high in June, accompanied by signs of recovery in employment. This strengthened the dollar to its highest level in nearly eight weeks, thereby amplifying the price of gold for non-dollar investors.
Traders are now focusing on the upcoming U.S. core personal consumption expenditures (PCE) price index report, scheduled for Friday. This report, which serves as the Federal Reserve’s preferred inflation gauge, is expected to provide further clarity on the timing of potential interest rate adjustments. A lower-than-expected inflation figure could prompt the Fed to consider multiple rate cuts this year, potentially reducing the opportunity cost of holding non-yielding assets such as gold.
Federal Reserve Outlook and Precious Metals
In addition to economic data, market participants are awaiting insights from key Federal Reserve officials scheduled to speak this week, including San Francisco Fed President Mary Daly, and Fed governors Lisa Cook and Michelle Bowman.
Performance of Other Precious Metals
In line with the trend in gold prices, spot silver registered a 0.15 percent increase to $29.56. Conversely, platinum experienced a marginal decline of 0.02 percent, settling at $992.30 per ounce, while palladium rose by 0.74 percent to $955.68.
The upcoming economic indicators and Federal Reserve comments are expected to guide the trajectory of precious metal prices in the near term, with market sentiment closely tied to developments in U.S. economic policy and global inflation trends.
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