Dubai: Gold prices remain under pressure, losing more than Dh6 this week

There has been noticeable fluctuations in gold prices recently, with a slight recovery on Thursday after rates broke through the neckline of the double top-pattern at $2,613

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Photo: Reuters file
by

Waheed Abbas

Published: Fri 20 Dec 2024, 12:02 PM

Last updated: Fri 20 Dec 2024, 12:05 PM

Gold prices continued their downward trajectory in Dubai in line with drop in global rates.

On Friday, 24K was trading at Dh314.50 per gram, down from Dh315.75 per gram in early trade on Thursday. It has lost more than Dh6 per gram this week so far.

Similarly, 22K, 21K, and 18K were also selling at a lower price: Dh291.25, Dh282, and Dh241.75 per gram, respectively.

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Spot gold was trading at $2,606.65 in early trade.

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

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Rania Gule, a senior market analyst at XS.com, said there had been noticeable fluctuations in gold prices recently, with a slight recovery on Thursday after rates broke through the neckline of the double top-pattern at $2,613, returning to the $2,600 levels that it successfully broke through on Wednesday, following the hawkish statements from the US Federal Reserve.

In recent statements, the Federal Reserve has noted that inflation risks remain elevated, and economic forecasts suggest a limited interest rate cut shortly. This hawkish monetary policy has pushed yields on US Treasury bonds to their highest levels since May, strengthening the dollar and putting pressure on gold, a non-yielding asset.

“In my opinion, this is likely to continue exerting pressure on gold in the near term, especially with rising bond yields, which are a crucial factor in determining the attractiveness of gold as a store of value. Additionally, the strength of the US dollar supports the demand for yield-bearing assets, which weakens gold's appeal as markets seek better returns,” she added.

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Waheed Abbas

Published: Fri 20 Dec 2024, 12:02 PM

Last updated: Fri 20 Dec 2024, 12:05 PM

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