Gold sees sudden Dh8 price spike after weekly loss: Here's why
Globally, spot gold rose to around $3,316 an ounce, clawing back most of last week's 2.4% drop. In the UAE, prices rose by Dh8 a gram by Monday evening, with a gram of 22K selling at Dh369.50 (and Dh399 for 24K).
Why sudden move?
The sudden move comes as markets await the US Federal Reserve's upcoming decision on interest rates, expected on Wednesday. Although the Fed is likely to hold rates steady, investors are closely watching for any signals about future rate cuts or changes in economic outlook.
The recent recovery in gold follows a sharp rally earlier this year, when prices surged 26% to a record high above $3,500 an ounce in April. That run-up was driven largely by fears over global economic stability, rising geopolitical tensions, and strong demand from central banks and Chinese investors.
Monday's spike was also supported by a dip in the US dollar. A weaker dollar tends to make gold more attractive to international buyers, since the metal is priced in dollars. The Bloomberg Dollar Spot Index fell by 0.4%, adding to gold's appeal.
Adding to the uncertainty were recent comments from US President Joe Biden, who said there are no immediate plans to hold talks with Chinese President Xi Jinping. Trade tensions between the US and China have weighed on global markets in recent weeks, and gold often benefits in such risk-off environments as a "safe-haven" asset.
Although the US economy continues to show strength — with surprisingly strong job data reported last week — this only complicates the picture for rate decisions. Some, including former US President Donald Trump, argue that rates should be cut regardless, but analysts believe the Fed may hold steady due to a still-firm labor market.
Next steps?
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Al Etihad
5 hours ago
- Al Etihad
UAE delegation discusses enhancing aviation cooperation with China
26 July 2025 15:42 BEIJING (WAM)Saif Mohammed Al Suwaidi, Director General of the General Civil Aviation Authority (GCAA), led an official delegation from the United Arab Emirates on a four-day visit to the People's Republic of visit aimed to enhance technical and commercial collaboration in the civil aviation sector, to push forward the UAE and China's strategic UAE delegation included Badr Salim Al Olama, Director-General of the Abu Dhabi Investment Office (ADIO), and Esmaeel Hassan Alblooshi, Director General of the Department of Civil Aviation, Ras Al Khaimah, along with senior representatives from the General Civil Aviation Authority, the Abu Dhabi Investment Office, EDGE Group, and the Department of Civil Aviation, Ras Al-Khaimah (RAKDCA).Saif Al Suwaidi emphasised that cooperation between the UAE and China in civil aviation continues to grow steadily, supported by existing agreements and the strong bilateral stated, 'We are working to expand cooperation with our partners in China, particularly in the fields of manufacturing, technical licensing, and knowledge exchange, contributing to the development of civil aviation systems. This visit represents a practical step towards establishing new partnerships that support the future growth plans of the aviation sector in both countries.'The visit began in Shanghai, where the delegation conducted high-level meetings and field visits with several leading Chinese aerospace manufacturers, including Commercial Aircraft Corporation of China (COMAC), TCab Tech, AutoFlight, and CETC UAE delegation, comprising senior representatives from GCAA, Abu Dhabi Investment Office, EDGE, and Ras Al Khaimah Department of Civil Aviation, explored the latest developments in aviation Suwaidi also toured COMAC's production facilities and met with Shen Bo, Vice Chairman of COMAC, in a high-level discussion that reviewed the company's forward-looking plans and explored joint industrial final two days of the visit were held in Beijing, where senior officials from the UAE and China's Civil Aviation Administration (CAAC) and Air Traffic Management Bureau (ATMB) convened to discuss regulatory alignment, certification systems, maintenance cooperation, air navigation services, and institutional visit concluded with a high-level meeting between Saif Al Suwaidi and his Chinese counterpart, Song Zhiyong, Administrator of CAAC, attended by senior diplomatic representatives from the UAE Embassy in China. Both sides reiterated their shared commitment to deepening aviation ties and outlined a mutual vision for future cooperation in the civil aviation sector.
Gulf Today
6 hours ago
- Gulf Today
Wall Street, dollar firm ahead of a big week for market risk
Wall Street and the dollar firmed on Friday as investors girded themselves for the week ahead, which includes a Federal Reserve policy meeting, crucial corporate results and US President Donald Trump's August 1 deadline for negotiating trade deals. 'Some deals will be done and talks will continue, and Trump may push out the deadline further,' said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York. 'Trump's process is to shock and then be reasonable in terms of tariffs.' All three indexes were modestly green in early trading, and were on course for weekly gains. Gold lost some shine, pressured by the dollar as healthy risk appetites lured investors away from the safe-haven metal. With Trump's negotiating deadline just a week away, the US and its trading partners are scrambling to reach trade agreements, with European negotiators heartened by the deal with Japan announced on Tuesday. Intel's shares INTC.O dropped 8.8% after the chipmaker forecast steeper-than-expected quarterly losses and said it had halted or scrapped new factory projects in the US and Europe. More than a third of the companies in the S&P 500 have posted results, 80% of which have beaten estimates, according to LSEG data. Analysts now expect year-on-year second-quarter earnings growth of 7.7%, compared with the 5.8% estimate as of July 1. Four members of the Magnificent 7 group of Artificial Intelligence-related megacap stocks - Amazon, Apple , Meta and Microsoft are on next week's earnings docket, and market participants will scrutinize the companies' conference calls for signs that AI expenditures are beginning to pay off and whether tariff-related uncertainties continue to weigh on forward guidance. US economic data released on Friday showed an unexpected decline in new orders for core capital goods, as companies hold back on big ticket purchases amid the fog of ongoing trade talks. The Fed is expected to convene next week for its two-day monetary policy meeting, which is expected to culminate in a decision to let its federal funds target rate stand in the 4.25% to 4.50% range. The meeting comes at a moment in which Fed Chair Jerome Powell is facing criticism from Trump for not cutting rates. 'I don't expect Powell to change what he does, nor should he,' Ghriskey added. 'The idea of lower interest rates should scare us because Fed has had this huge job of bringing down inflation, and to ease rates at this point is clearly going to be inflationary.' The Dow Jones Industrial Average rose 113.54 points, or 0.25%, to 44,806.30, the S&P 500 rose 16.19 points, or 0.26%, to 6,379.67 and the Nasdaq Composite rose 44.40 points, or 0.21%, to 21,102.36. European shares gave back some of the previous session's gains as market participants parsed mixed corporate earnings and awaited developments in the U.S.-EU trade negotiations. MSCI's gauge of stocks across the globe fell 1.01 points, or 0.11%, to 940.34. The pan-European STOXX 600 index fell 0.29%, while Europe's broad FTSEurofirst 300 index fell 5.34 points, or 0.24%. Emerging market stocks fell 10.36 points, or 0.82%, to 1,256.93. MSCI's broadest index of Asia-Pacific shares outside Japan closed lower by 0.95%, to 661.07, while Japan's Nikkei fell 370.11 points, or 0.88%, to 41,456.23. US Treasury yields drifted higher in a subdued trading as investors braced for a data-heavy week, updates on US trade talks, and a Federal Reserve policy meeting. The yield on benchmark US 10-year notes rose 0.2 basis points to 4.41%, from 4.408% late on Thursday. The 30-year bond yield rose 0.5 basis points to 4.9543% from 4.949% late on Thursday. The 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, fell 0.6 basis points to 3.919%, from 3.925% late on Thursday. The dollar gained strength but remained on course for its biggest drop in a month as investors focused on tariff negotiations and central bank meetings on the calendar for next week. The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.28% to 97.72, with the euro down 0.2% at $1.173. Against the Japanese yen, the dollar strengthened 0.4% to 147.57. In cryptocurrencies, bitcoin fell 3.08% to $115,133.22. Ethereum declined 2.63% to $3,641.43. Oil prices softened as investors mulled the global demand outlook and a potential supply increase from Venezuela. US crude fell 0.56% to $65.63 a barrel and Brent fell to $68.91 per barrel, down 0.39% on the day. Gold prices dropped in opposition to the firming dollar, amid growing optimism surrounding U.S.-EU trade talks. Spot gold fell 0.93% to $3,336.52 an ounce. US gold futures fell 0.85% to $3,342.50 an ounce. Canada's main stock index edged higher on Friday, led by technology shares, even as US President Donald Trump suggested the United States may not reach a negotiated trade deal with Canada. The benchmark S&P/TSX Composite Index rose 0.2% to 27,427.78 points, remaining on track for a modest weekly gain. Trump said on Friday that the United States may not reach a trade agreement with Canada, hinting his administration could set a tariff rate unilaterally. Agencies
Al Etihad
13 hours ago
- Al Etihad
China proposes global AI cooperation organisation
26 July 2025 08:42 SHANGHAI (REUTERS)Chinese Premier Li Qiang on Saturday proposed establishing an organisation to foster global cooperation on artificial intelligence, calling on countries to coordinate on the development and security of the fast-evolving at the opening of the annual World Artificial Intelligence Conference (WAIC) in Shanghai, Li called AI a new engine for growth, but adding that governance is fragmented and emphasising the need for more coordination between countries to form a globally recognised framework for three-day event brings together industry leaders and policymakers at a time of escalating technological competition between China and the United States - the world's two largest economies - with AI emerging as a key battleground."Currently, overall global AI governance is still fragmented. Countries have great differences particularly in terms of areas such as regulatory concepts, institutional rules," Li said."We should strengthen coordination to form a global AI governance framework that has broad consensus as soon as possible," he has imposed export restrictions on advanced technology to China, including the most high-end AI chips made by companies such as Nvidia and chipmaking equipment. Despite these restrictions, China has continued making AI warned that AI could become an "exclusive game" for a few countries and companies, and said challenges included an insufficient supply of AI chips and restrictions on talent exchange. China wanted to share its development experience and products with other countries, especially those in the Global South, he is an annual government-sponsored event in Shanghai that typically attracts major industry players, government officials, researchers and investors. Tesla CEO Elon Musk has in past years regularly appeared at the opening ceremony but did not speak this than 800 companies are participating, showcasing more than 3,000 high-tech products, 40 large language models, 50 AI-powered devices and 60 intelligent robots, according to organisers. The exhibition features many Chinese companies, including tech giants Huawei and Alibaba and startups such as humanoid robot maker Unitree. Western participants include Tesla, Alphabet and Amazon.
