Precious metal extended its gains on Wednesday in light of increased risk aversion from market participants
Gold prices dropped one dirham per gram at the opening of the markets on Thursday after it gained over two dirhams per gram yesterday.
The Dubai Jewellery Group data showed 24K trading at Dh236 per gram on Thursday at 9 am UAE time as compared to last night’s close of Dh237 per gram. Similarly, 22K, 21K and 18K also opened lower at Dh218.5, Dh211.5 and Dh181.25 per gram, respectively.
The 24K variant’s price jumped Dh2.25 on Wednesday. Globally, spot gold was down 0.14 per cent to $1,948.3 per ounce by 9.23 am UAE time.
Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said gold spiked above its 200-DMA defying mountains and the rising US yields. “The yellow metal is a solid hedge against risky assets that get smashed by a severe fall in appetite.”
Zain Vawda, analyst at dailyFX, said the precious metal extended its gains on Wednesday in light of increased risk aversion from market participants.
“The rise of the risk-off environment comes courtesy of an explosion of a hospital in Gaza which saw both Israel and Palestine trade blame for the atrocity. The impact and fallout spurred renewed concern of a wider conflict which helped gold accelerate toward the $1950/oz handle,” he added.
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Waheed Abbas is Assistant Editor, covering real estate, aviation and other business stories that directly affect the lives of UAE consumers. He frequently reports human interest stories, too.