Gold prices head lower as inflation fears and expectations of potential US interest rate increases continue to pressure investor sentiment.
LONDON: Gold prices moved lower on Friday and were on track to record a weekly decline as investors weighed persistent inflation concerns and the possibility of further interest rate increases in the United States.
The precious metal has faced renewed pressure throughout the week as market participants reassessed the outlook for monetary policy. Higher interest rates typically reduce the appeal of non-yielding assets such as gold, prompting investors to shift towards assets offering stronger returns.
Gold rates in UAE:
24K – AED 508
22K – AED 471
21K – AED 451
Gold prices head lower after spot gold fell 0.5 per cent to $4,191.17 per ounce during early trading. The decline leaves the metal on course for a weekly loss of approximately 3.2 per cent, reflecting broader caution across commodity markets.
Despite the weakness in spot prices, US gold futures for August delivery rose 2.4 per cent to $4,212.70 per ounce. Analysts said futures trading remained influenced by expectations surrounding future economic data and Federal Reserve policy decisions.
Other precious metals delivered mixed performances. Spot silver slipped 0.4 per cent to $67.10 per ounce and was also heading towards a weekly decline. Platinum gained 0.7 per cent to $1,731.40 per ounce, although it too remained set for a loss over the week.
Meanwhile, palladium outperformed its peers. The metal rose 1.6 per cent to $1,289.33 per ounce and was on track to post a weekly gain of around 5 per cent, making it one of the strongest performers among major precious metals.
Gold prices head lower as investors continue monitoring inflation trends and signals from the US Federal Reserve regarding future borrowing costs. Any indication that policymakers may keep rates higher for longer could further influence demand for precious metals in the weeks ahead.
For now, traders remain focused on inflation data, central bank commentary and global economic indicators, all of which are expected to shape market sentiment and commodity prices through the remainder of the month.
