UAE: Gold prices continue to rise day after Dh2 jump

George Khoury, Global Head of Education and Research at CFI, said gold surged higher and could resume its bullish momentum as investors continue to expect the Federal Reserve to soften its monetary policy.

“Chicago Fed President Austan Goolsbee hinted at the possibility of three rate cuts this year, contrasting with Fed Governor Lisa Cook’s cautious approach toward rate adjustments. The interest rate cuts could support gold prices as they materialize over the long term,” he said.

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In this regard, investors could brace for crucial US inflation data on Friday and could take a more cautious approach.

“The data could significantly influence the Federal Reserve’s monetary policy stance. Gold prices could climb even higher if inflation readings come weaker-than-expected. However, the market remains on an uptrend although US durable goods orders surpassed expectations in February and weighed on sentiment to a certain extent and on gold prices yesterday. In addition, gold purchases from central banks could continue to provide a floor for the market,” said Khoury.

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