Gold prices in Dubai drop after inching closer to Dh300 per gram

Globally, spot gold was trading 0.08 per cent lower at $2,462.08 per ounce

Waheed Abbas

Published: Wed 14 Aug 2024, 9:26 AM

Gold prices in Dubai slipped Dh1.5 per gram at the opening of the markets on Wednesday after prices inched closer to Dh300 per gram on Tuesday.

In the UAE, the 24K variant of the yellow metal was trading at Dh298.0 per gram at 9am UAE time on Wednesday compared to last night’s close of Dh299.5 per gram. Among the other variants, 22K, 21K and 18K were trading at Dh276.0, Dh267.25 and Dh229.0 per gram, respectively.

Globally, spot gold was trading 0.08 per cent lower at $2,462.08 per ounce.

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Rania Gule, senior market analyst at XS.com, said gold has managed to recover most of its weekly losses following gains on Thursday, trading at $2,463 on Tuesday after reaching a monthly peak of $2,475.

“Despite this recovery, the price hasn't fully overcome its recent difficulties. The gold market has faced substantial volatility over the past week,” said Gule.

China's anticipated liquidity injection could boost gold and other cryptocurrencies. Historically, the People's Bank of China increases liquidity in August, as seen on August 11, 2020, August 31, 2021, 2022, and August 28, 2023. However, market activity has been subdued after a modest liquidity increase in June. It is expected that China may hold off on liquidity measures until after the Federal Reserve potentially cuts interest rates, possibly on September 18, which could increase global liquidity and support gold prices.

She added that geopolitical developments are also influencing the market.

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