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UAE: Gold prices drop over Dh5 per gram in early trade on Thursday

Globally, spot gold was down nearly one per cent at $2,375.2 per ounce

Published: Thu 25 Jul 2024, 9:31 AM

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Photo: AFP

Photo: AFP

Gold prices fell more than Dh5 per gram at the opening of the markets in Dubai on Thursday as global prices of the yellow metal fell due to profit-taking.

At 9 am, the 24K variant of the precious metal was trading at Dh287.75 per gram compared to Dh293.25 at the close of the markets on Wednesday, down Dh5.5 per gram. Among the other variants, 22K, 21K and 18K fell to Dh266.5, Dh258.0 and Dh221.0 per gram, respectively, in early trade on Thursday.

Globally, spot gold was down nearly one per cent at $2,375.2 per ounce at 9.10am UAE time as investors booked profits ahead of key US economic data that could provide more insights related to interest rate cuts by the central banks.

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Eman AlAyyaf, CEO of EA Trading, said investors could remain cautious ahead of important US economic and inflation reports due later this week. “These reports are expected to impact the Federal Reserve's policy decisions. Key data to watch include the second-quarter GDP report on Thursday and the June PCE price index on Friday. These figures could provide clues about the Fed’s future actions, with the market currently expecting rate cuts to start in September, which could support higher gold prices,” Eman said.

She added that this trend is likely to persist, particularly as the US dollar's slight retreat from its peak reinforces the appreciation in yellow metal prices.

“Gold prices may also benefit from improved sentiment due to stronger anticipated demand in India. Central bank demand as well as geopolitical tensions could also remain strong drivers for gold prices,” she added.

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