Dubai gold prices drop further; lose Dh8 per gram so far this week

Gold prices continued their downward trend in Dubai on Wednesday morning, losing up to Dh0.75 per gram. The Dubai Jewellery Group data showed the 24K variant of the yellow metal fall to Dh315.50 per gram, down from Dh316.25 per gram at the close of the markets on Tuesday. The precious metal price has dropped Dh8 per gram so far this week.

Among the other variants, 22K, 21K and 18K dipped to Dh292.25, Dh283 and Dh242.50 per gram, respectively.

Globally, gold was trading at $26,05.56 per ounce, down 0.21 per cent.

[Editor's Note: For real-time gold rates, click on the widget below or check KT's dedicated Trading News page here.]

Samer Hasn, senior market Analyst at XS.com, said gold’s decline comes amid concerns about the higher-for-longer interest rates with Donald Trump’s return to the White House and the implementation of policies that might fuel inflation and business growth, which was reflected in the continued rise in Treasury yields.

“Despite the recent interest rate cut by the Federal Reserve last week, it did not provide a boost to sentiment regarding the continuation of the cuts into next year. We are witnessing a gradual decline in the probability of the Fed cutting rates next January,” he said, adding that if the Fed cut rates in January, the probability of further a cut in March is only 11 per cent, after exceeding 60 per cent a month ago, according to CME FedWatch Tool figures.

• UAE residents who lost life savings find hope as India's Supreme Court orders Heera Group property auction