Dubai — Dubai gold prices fell on Thursday, following a global retreat from record levels. The price of 22-karat eased by Dh4 to Dh393 per gram from its previous high of Dh397.
Worldwide, spot gold pulled back from a record high of $3,578.50 an ounce on Wednesday, with analysts pointing to profit-taking as the primary cause of the pullback. The yellow metal had rallied over 30% since January and was among the best-performing commodities this year.
Market analysts stated the pullback does not mean the gold rally is coming to a close. "There has been a little bit of profit-taking, but gold is still in a bull market," said Brian Lan, Managing Director at GoldSilver Central. "With rate-cutting expectations and continued uncertainty regarding the Federal Reserve policy stance, prices might still go up to $3,800 or higher in the near future.
Investors are currently eyeing the US Federal Reserve's September 17 meeting when a rate cut is largely anticipated. Based on CME Group data, markets anticipate a 97% probability of a modest reduction, higher than 92% earlier this week. Lower interest rates tend to increase gold demand since the metal does not earn interest.
Even as Thursday's correction, gold still draws the safe-haven investors, retail consumers in Dubai still stay cautious at high price levels.
