As investors await the conclusion of the US-Iran negotiations, gold prices in Dubai remained stable on Friday morning. However, in early trading, the price of silver surpassed that of yellow metal by more than three percent. The price of 24K gold was Dh624.50 per gramme at the start of Friday’s Dubai market session, up Dh2.25 from the previous night’s closing.
The Geneva nuclear talks between the United States and Iran continue to dominate the market. Geopolitical threats are still significant but not getting worse because the most recent rounds of negotiations have not yielded a definitive conclusion. Although it hasn’t yet generated enough momentum to create a long-lasting bullish trend, this has held gold at high levels,” she continued.
A noteworthy signal from the standpoint of flow originates from SPDR Gold Trust, which bought about 19 tons over the course of three sessions. The quick restoration of institutional inflows indicates that demand for hedging is still there. This is a major driver of gold’s high price basis, especially given the unresolved geopolitical and policy issues,” Tran continued.
Since US inflation remains above the Fed’s 2% target, short-term monetary easing will be more challenging. Consequently, even when demand for safe haven assets continues, gold might find it difficult to make a significant short-term breakout, according to Tran.
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