Dubai: Gold prices drop over Dh1 per gram in early trade

Globally, spot gold was steady at $2,651.11 per ounce

Waheed Abbas

Published: Tue 17 Dec 2024, 9:12 AM

Gold prices fell Dh1.5 per gram at the opening of the markets in Dubai on Tuesday.

At 9am UAE, the 24K variant of the precious metal fell to Dh321.0 per gram, down from Dh322.5 at the close of the markets on Monday. Among others, 22K, 21K and 18K fell to Dh297.25, Dh287.75 and Dh246.75 per gram, respectively.

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Globally, spot gold was steady at $2,651.11 per ounce.

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Chris Weston, head of research at Pepperstone, said gold bulls would have been frustrated last week at the rejection of the November 25 highs and the reversal lower off $2,726 - but as the new trading week cranks up, calmer conditions are currently seen in trade, with gold traders holding back on putting on new positioning (long or short) until the US Treasury market fires up.

“With US 10-year real rates back above 2 per cent and nominal US 10-year Treasury yields rising a punchy 24bp last week, gold will revert to taking its directional steer from moves in US 10-year Treasury yields, and notably if we were to see follow-through selling, and should traders increase conviction levels that an upside break of 4.50 per cent is probable, then gold will likely head towards to the former range lows of $2,613 and even the 100-day moving average at $2,600, which has defined the bull trend all year,” said Weston.

He added that gold’s relationship with the dollar and US Treasuries has wavered throughout 2024, but when yields rip higher as they did last week, it is often too much for gold players to ignore, and the need to cut back on long positioning increases greatly.

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