Dubai gold prices descend from record peak, 22-karat gold slips below AED 400 per gram.

In the financial world, gold prices have been making headlines, with the precious metal hitting an all-time high of $3,600 last week. This surge can be attributed to several factors, including the anticipated interest rate cuts by the US Federal Reserve in September and the weakness of the US dollar.

On Monday, spot gold was little changed at $3,583.74 per ounce, following a lower opening in the UAE. Meanwhile, 18K, 22K, and 24K gold also opened lower, with prices ranging from Dh328.25 to Dh431.5 per gram.

The recent US jobs report has raised concerns about the state of the US labour market. Last week, a weaker-than-expected report showed the economy lost jobs in June, and the unemployment rate climbed to 4.3 per cent as anticipated. Analysts expected a higher number of new non-farm jobs, but only 22,000 were added.

Manufacturing shed another 12,000 jobs in July, a trend that has been ongoing due to factors such as mass deportations, restrained immigration, and tariff-related uncertainty. Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, stated that the US labour market is expected to deteriorate further.

The potential for continued job losses could contribute to the ongoing rise in gold prices. Ozkardeskaya suggested that the bleeding may continue before production and employment eventually shift back to the US. She also noted that many factory-floor jobs may be replaced by robots, further impacting employment figures.

Despite the current economic uncertainties, the participation rate ticked slightly higher but not enough to improve the outlook. Prior months' revisions showed a similar trend, with the US economy continuing to grapple with job losses.

As gold prices continue to rise, investors and analysts will be closely watching the US labour market for signs of recovery. The health of the labour market is closely tied to the overall economy, and any improvement could potentially lead to a slowdown in the gold price rally.

In the meantime, gold remains a safe haven for investors seeking to protect their assets during times of economic uncertainty. With the US labour market showing signs of weakness, it seems that gold's allure as a safe investment option is only set to grow.

Dubai gold prices descend from record peak, 22-karat gold slips below AED 400 per gram.