UAE: Gold prices continue to drop on Friday, fall Dh2 per gram since Thursday morning

Gold prices in the UAE dropped further on Friday, falling Dh2 per gram since Thursday morning.

The 24K variant of the yellow metal dropped to Dh329.25 per gram on Friday evening, down from Dh331.25 per gram at the opening of the markets on Thursday. Similarly, 22K, 21K, and 18K fell to Dh 304.75, Dh295.0, and Dh253.0 per gram, respectively.

Spot gold was trading at $2,729.68 per ounce, down by 0.17 per cent on Friday evening.

Bas Kooijman, CEO and asset manager of DHF Capital, said gold prices continued to decline on Friday due to profit-taking. “The dollar stabilised, and the 10-year Note yield hovered around 4.2 per cent, drawing investors away from gold to a certain extent. Gold could remain exposed to US economic data after expectations moved toward a less aggressive Federal Reserve rate-cutting cycle than anticipated."

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Kooijman added, "A slower pace of rate cuts could be detrimental to gold. We see solid support for gold around the $2,714 level and anticipate that it will maintain its upward momentum, provided this price level holds steady."

Next week, the market will be attentive to key US economic data that could impact sentiment and expectations for the Fed’s rate-cutting path, which may introduce some volatility to the gold market.

Despite these short-term fluctuations, he said gold’s upward momentum remains strong, supported by geopolitical tensions in the Middle East and concerns about a broader conflict.

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