UAE: Gold prices drop Dh1 per gram in early trade

Spot gold was down 0.47 per cent at $2,030.1 per ounce

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Photo: Reuters
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Waheed Abbas

Published: Mon 5 Feb 2024, 10:03 AM

Gold prices dropped by one dirham per gram in the UAE at the opening of the markets on Monday.

The 24K variant of the precious was trading at Dh246.0 per gram on Monday morning as compared to last week’s close of Dh247.0 per gram. Among the other variants, 22K opened lower at Dh227.75, 21K at Dh220.5 and 18K at Dh189.0 per gram, according to the Dubai Jewellery Group data.

Globally, spot gold was down 0.47 per cent at $2,030.1 per ounce by 9.44 am UAE time as the dollar and Treasury yields surged after a blowout US jobs report crushed expectations of near-term interest rate cuts from the Federal Reserve.

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Antonio Ernesto Di Giacomo, market analyst at xs.com, said traders have been attentive to several variables that have influenced the price of gold, such as the announcement of the US monetary policy, macroeconomic indicators and conflicts between some countries in several regions.

“Although there is no perceived immediate need to lower interest rates, there is a possibility that a cut could be considered during the second quarter of the year. This change in outlook highlights the possibility of the Federal Reserve adopting a less restrictive stance in the future, showing greater flexibility in its approach to address potential economic challenges,” he said.

Antonio added that investors are keeping a close eye on the events in the Middle East.

“Traders are extremely alert to any developments that may impact the metal, as it acts as a sensitive indicator of significant geopolitical and economic events,” he added.

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Waheed Abbas

Published: Mon 5 Feb 2024, 10:03 AM

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