Gold prices rose in the local market for its various “carats”, on Tuesday, by 40 piasters per gram.

The price of selling a gram of 21 carat gold was the most wanted by citizens at 40.20 dinars for the purposes of buying citizens from goldsmiths’ shops, compared to 38.50 dinars for sale.

According to the daily pricing issued by the General Syndicate for the owners of trading and crafting jewelry stores, the selling price of a gram of 24 and 18 karat gold for the purposes of purchasing from goldsmiths’ shops was 46.70 and 35.80 dinars, respectively.

Gold prices fell on Tuesday, as investors evaluated the expected path of monetary policy in the United States, after data showed a decline in manufacturing activity there and amid inflationary risks raised by production cuts from the OPEC + group.

Gold in spot transactions fell 0.3% to $1978.10 an ounce by 05:49 GMT, while US gold futures fell 0.2% to $1997.30.

The dollar index rose 0.2%, which makes the precious metal more expensive for buyers holding other currencies.

Gold is considered a tool to hedge against inflation, but high interest rates also raise the opportunity cost of owning it, as it does not yield a return.

Oil prices rose as investors turned their attention to the future of demand and the impact of higher prices on the global economy.

Gold prices fell on Monday, after the OPEC + group announced a sudden reduction in crude oil production at the beginning of the week.

However, prices changed direction, rising 1%, as the dollar collapsed in the wake of the publication of weak US economic data.

US manufacturing activity fell in March to its lowest level in nearly three years as new orders tumbled and may continue to decline due to tightening credit.

Markets expect by 58.7% that the Federal Reserve (the US central bank) will raise interest rates by a quarter of a percentage point in May, but the possibility of a rate cut later in the year also rose.

“In the short term (the second quarter), we expect gold to derive more support from a scenario in which both inflation and interest rates may peak,” Edward Meir, metals analyst at Marex, said in a note.

He added, “If our expectations are correct, then this is expected to lead to a decline in the dollar and pave the way for a larger upward movement (for gold).”

Silver lost 0.9% in spot transactions, recording $23.79 an ounce, while platinum fell 0.3% to $982.62, and palladium fell 0.4% to $1453.64.