Gold Prices Dip in Dubai Amid Awaited Remarks from Federal Reserve Chair

Gold prices dipped in Dubai on Friday morning as investors awaited remarks from US Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium. Spot gold was down 0.66% at $4,580 an ounce.

The prices of 24K, 22K and 21K gold were trading at Dh552.5, Dh511.75 and Dh490.5 per gram, respectively, down around Dh2 per gram from Thursday's close. Among the other variants of the yellow metal, 18K and 14K slipped to Dh420.5 and Dh328.0 per gram.

Ahmad Assiri, research strategist at Pepperstone, said that for gold traders, Jackson Hole is a crucial event that will dominate sentiment for the remainder of the week. 'Warsh has emphasised a broader shift towards 'no forward guidance' stance, allowing market dynamics to independently price the outlook for growth, inflation and interest rates rather than relying on signals from policymakers,' he added.

Markets will then be looking for clues on the Fed's reaction function heading into the September FOMC meeting, particularly around inflation pressure, the labour market and financial conditions. The Treasury's recent announcement of intervention in the 30-year Treasury market only adds more complexity to the outlook.