Gold prices in Dubai see big drop, lose Dh4 per gram

Markets are waiting for minutes of the Federal Reserve's latest policy meeting for fresh signals

Waheed Abbas

Published: Tue 8 Oct 2024, 8:38 PM

Last updated: Tue 8 Oct 2024, 8:45 PM

Gold prices in Dubai recorded a huge drop on Tuesday evening, losing Dh4 per gram during the day.

According to Dubai Jewellery Group data, the 24K variant of the yellow metal dropped to Dh316 per gram at 8pm, down from Dh320 per gram at the opening of the markets today.

The other variants also saw a big drop with 22K, 21K and 18K trading at Dh292.5, Dh283.25 and Dh242.75 per gram, respectively. It was one of the biggest drops in the recent past.

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Spot gold lost more than 1 per cent on Tuesday to trade at $2,614.16 per ounce, down 1.1 per cent at 8pm as recent US employment data priced out the chances of a bigger rate cut by the Federal Reserve.

Markets are waiting for minutes of the Federal Reserve's latest policy meeting for fresh signals. The Fed cut rates by half a percentage point in September for the first since the pandemic.

Chris Weston, head of research at Pepperstone, said as the daily consolidation in price becomes more mature, the potential for a more explosive move through the defined range of $2,685 or $2,624 also increases.

“These are the levels that define the recent range, and while we can make life more complicated by trying to rationalise exactly what the broad suite of gold players focus on to take inspiration for directional bets, the price action and the technical set-up aggregates all beliefs and behaviours. Subsequently, it pays to wait for the gold market to force a trade, where a powerful breakout, when it comes, of either level, should shape the trading bias – it will come, and when it does, that trend could be well worth chasing,” said Weston.

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