Data reveals China holding off on gold purchases
After 18 consecutive months of purchasing gold, China has surprisingly decided to hold off on buying gold in May. This unexpected move has impacted global gold prices, leading to a 3.5 percent decline on Friday, the largest drop since November 2020.
Insight on Federal Reserve policy meeting
Investors are now eagerly awaiting the Federal Reserve policy meeting this week to gain further insights into the direction of interest rates. The recent stronger-than-expected U.S. jobs data has already caused a marginal decline in gold prices, and market participants will be closely monitoring any announcements or hints from the Fed regarding future rate cuts.
Gold prices in the UAE and globally
In the UAE, gold prices have remained relatively stable, with 24-carat gold holding at AED277.75 per gram. Meanwhile, globally, spot gold experienced a slight 0.01 percent decline to $2,293.64 per ounce. Despite this, U.S. gold futures saw a more significant 0.62 percent decline to $2,310.55.
Impact on precious metals market
The decline in gold prices has led to a positive trend in the precious metals market, with spot silver, platinum, and palladium all seeing increases in their prices. Silver rose by 0.83 percent to $29.42 per ounce, platinum increased by 0.95 percent to $972.90, and palladium gained 1.24 percent, reaching $923.32.
Looking ahead
As market dynamics continue to shift, it will be interesting to see how China’s decision to pause its gold purchases will affect the overall gold market. Additionally, the outcome of the Federal Reserve policy meeting and any updates on interest rates will play a crucial role in determining the future direction of gold prices. Investors and traders will need to stay vigilant and adapt their strategies accordingly to navigate the ever-changing landscape of the precious metals market.
