Dubai: Gold prices drop nearly Dh2 per gram; 22K slips below Dh300

Spot gold was trading lower at $2,673.44 per ounce, down by 0.43 per cent at 9.08am UAE time

Waheed Abbas

Published: Mon 11 Nov 2024, 9:26 AM

Last updated: Mon 11 Nov 2024, 9:37 AM

Gold prices lost nearly Dh2 per gram at the opening of the markets in Dubai on the first trading day with 22K falling below Dh300 per gram.

At 9am UAE time, the 24K variant fell Dh1.75 per gram to Dh323.5 per gram in Dubai, down from Dh325.25 at the close of the markets over the weekend.

Among the other variants, 22K, 21K, and 18K fell to Dh301.25, Dh291.5, and Dh250.0 per gram, respectively.

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Spot gold was trading lower at $2,673.44 per ounce, down by 0.43 per cent at 9.08am UAE time.

Gold prices fell after Donald Trump won the US election as the US dollar strengthened. Gold prices strengthened after the US Federal Reserve raised rates last week.

Mohamed Hashad, chief market strategist, Noor Capital, said yellow metal prices surged over 1.7 per cent after the Federal Reserve delivered a widely anticipated 25 basis point interest rate cut. “While the market had largely priced in this move, the Fed’s acknowledgement of economic uncertainty and balanced risks bolstered gold’s safe-haven appeal,” he said.

Hashad added that a break above $2,700 could target the 20-day simple moving average (SMA) at $2,716 and potentially reach $2,750. A decline below the November 6 low of $2,652 could lead to further losses towards the 50-day SMA at $2,639 and the October 10 low of $2,603.

“The Federal Reserve’s monetary policy decisions significantly impact gold prices. Lower interest rates typically weaken the US dollar and boost demand for gold as an inflation hedge and safe-haven asset. Conversely, higher interest rates tend to strengthen the dollar and reduce gold’s appeal,” he added.

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