Gold Eases as Dollar Firms; Focus on Fed Minutes

A view of smelted gold bars at a smelting facility in Accra, Ghana August 22, 2024. REUTERS/Francis Kokoroko
A view of smelted gold bars at a smelting facility in Accra, Ghana August 22, 2024. REUTERS/Francis Kokoroko
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Gold Eases as Dollar Firms; Focus on Fed Minutes

A view of smelted gold bars at a smelting facility in Accra, Ghana August 22, 2024. REUTERS/Francis Kokoroko
A view of smelted gold bars at a smelting facility in Accra, Ghana August 22, 2024. REUTERS/Francis Kokoroko

Gold prices edged lower on Tuesday, pressured by a stronger dollar, while investors awaited minutes of the Federal Reserve's latest policy meeting and more economic data for insights on the US interest rate outlook.
Spot gold fell 0.3% to $2,634.69 per ounce by 0728 GMT. US gold futures lost 0.5% to $2,653.90, Reuters reported.

The dollar index hovered near a seven-week high, making bullion more expensive for holders of other currencies.
Gold has lost some momentum due to the rising dollar and bond yields, but downside risks may be limited by global conflicts that favor safe-haven assets, said Tim Waterer, chief market analyst at KCM Trade.
Hezbollah fired rockets at Israel's third-largest city, Haifa, while Israel appeared ready to expand its offensive into Lebanon, marking one year since the Hamas attack that ignited the Gaza war.
Bullion is considered a safe investment during times of political uncertainty.
Investors are focused on the minutes of the Fed's latest policy meeting, due on Wednesday, followed by the US Consumer Price Index on Thursday and the Producer Price Index data on Friday. Several Fed officials are also lined up to speak throughout the week.
"Looking ahead, if we see any upside surprises in the US CPI numbers this week, this could further boost the dollar and pressure gold," Waterer said.
According to the CME FedWatch tool, markets are no longer pricing in a 50-basis-point reduction at the Fed's November meeting after last week's strong jobs report. They now see an 88% chance for a 25-bp cut.
Meanwhile, St. Louis Fed President Alberto Musalem expressed support for more rate cuts, emphasizing that the economy's performance will guide policy.
Spot silver lost 2.02% to $31.08 per ounce. Platinum was down 1% to $962.90 and palladium fell nearly 3% to $994.00.
Elsewhere, China said it was "fully confident" of meeting its economic targets, but refrained from introducing stronger fiscal steps to get the economy back on track.



Saudi Real Estate Transactions Surpass $533 Billion in 2024

Riyadh’s Expo 2030 logo adorns the capital’s sky (Asharq Al-Awsat).
Riyadh’s Expo 2030 logo adorns the capital’s sky (Asharq Al-Awsat).
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Saudi Real Estate Transactions Surpass $533 Billion in 2024

Riyadh’s Expo 2030 logo adorns the capital’s sky (Asharq Al-Awsat).
Riyadh’s Expo 2030 logo adorns the capital’s sky (Asharq Al-Awsat).

Real estate transactions in Saudi Arabia exceeded $533 billion (SAR 2.5 trillion) in 2024, covering over 622,000 deals and spanning approximately 5.8 billion square meters. More than 520,000 properties were traded, according to data from the Real Estate Exchange managed by the Saudi Ministry of Justice.

These figures underscore the strength of Saudi Arabia’s real estate market as a primary driver of its economy. Experts credit this growth to the Kingdom’s broader economic boom and its success in hosting major global events. The market is expected to maintain its momentum in 2025 and beyond, attracting further investment and large-scale projects, with sustainability and innovation driving continued growth.

Standard & Poor’s predicts the sector’s contribution to Saudi Arabia’s GDP will rise to 10% by 2030, up from 5.9% today. This growth is bolstered by significant increases in real estate financing.

In November, Minister of Municipal and Rural Affairs and Housing Majid Al-Hogail noted that financing had grown 300% in five years, reaching SAR 800 billion in 2024, compared to SAR 200 billion in 2018.

Real estate expert Ahmed Al-Faqih described the 2024 surge in transaction values and volumes as expected, given various incentives for investors, developers, and individuals. He highlighted the increased attractiveness of the market, driven by Saudi Arabia’s success in hosting major international events across economic, cultural, and sports sectors. This has positioned the Kingdom as a premier destination for domestic, regional, and international investments.

For his part, real estate marketer Abdullah Al-Mousa noted that the record numbers reflect growing investor confidence in the Saudi market, bolstered by Vision 2030, supportive regulations, and urban expansion through mega-projects like NEOM and Qiddiya. These initiatives have strengthened economic growth and improved real estate infrastructure.

Al-Mousa also pointed to rising local and international demand for residential and commercial properties, the growing middle class, and the adoption of innovative technologies such as virtual tours and smart property evaluations. These advancements have enhanced transparency and accelerated decision-making in the real estate sector.

Additionally, regulatory reforms and the development of economic zones will further attract international investments, according to the expert. These factors are expected to stabilize property prices in certain areas, contributing to a sustainable market and increasing its appeal.

Al-Mousa concluded that Saudi Arabia’s real estate sector has established itself as a vital economic engine. With ongoing government investment and technological innovation, the market is poised to sustain its momentum, attracting more investment opportunities in 2025 and beyond, with sustainability and innovation remaining key drivers of growth.