UAE: Gold prices dip slightly after gaining over Dh2 per gram this week so far

Chris Weston, head of research at Pepperstone, said gold has chopped around in a $2,433 to $2,280 range since mid-April

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Waheed Abbas

Published: Wed 12 Jun 2024, 9:41 AM

Gold prices slightly dropped at the opening of the markets in UAE on Wednesday, after gaining Dh1.25 per gram on Tuesday.

According to Dubai Jewellery Group data, the 24K variant of the yellow metal was trading at Dh280.0 per gram at 9am UAE time, down by Dh0.25 per gram. While 22K, 21K and 18K were trading at Dh259.25, Dh251.0 and Dh215.25 per gram, respectively.

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Gold prices have gained more than Dh2 per gram since the start of the week in the UAE as prices rose for two consecutive days this week.

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Globally, gold was trading at $2,313.09 per ounce, down by 0.09 per cent.

Chris Weston, head of research at Pepperstone, said gold has chopped around in a $2,433 to $2,280 range since mid-April.

“I like this range holding until we see clarity on its investment case. The good news for the bulls is that price holds in despite equities at all-time highs, low volatility across markets and little need (for now) to add gold weightings in the portfolio against real economic fragility,” he said.

“Conversely,” Weston said, “with People’s Bank of China easing back on further increasing its allocation of gold within its reserves, markets becoming more comfortable with the news flow in geopolitics, and US real rates and the US dollar essentially range bound – the need to chase any upside is limited too. Subsequently, the market needs to see a compelling reason for turning overweight or the risk is we hold this range in the short-term.”

Taking a medium-term view though, the head of research at Pepperstone sees a real risk of greater upside potential than downside.

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Waheed Abbas

Published: Wed 12 Jun 2024, 9:41 AM

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