It rose above the $2,000 mark after the sudden collapse of two US lenders earlier this month, but has since ceded gains as authorities stepped in with rescue measures
Gold prices edged lower in Dubai and globally on Thursday as easing concerns about the global banking system fed risk appetite and curbed some safe-haven bullion bids.
Spot gold was down 0.13 per cent at $1,960.68 per ounce, as of 9.10 am UAE time.
In the UAE, the Dubai Jewellery Group showed 24K opening at Dh237.5 per gram at the opening of the markets on Thursday, as compared to last night’s close of Dh238.25 per gram.
Among the other variants of the precious metal, 22K opened at Dh219.75, 21K at Dh212.75 and 18K at Dh182.5 per gram.
Gold rose above the $2,000 mark after the sudden collapse of two US lenders earlier this month, but has since ceded gains as authorities stepped in with rescue measures, including UBS’ takeover of ailing Credit Suisse and First Citizens BancShares' deal to buy failed Silicon Valley Bank.
"In the short term, profit-taking as well as reduced fears of further contagion amongst banks should see the gold price continue to decline back towards $1,920 an ounce," said Michael Langford, director at corporate advisory firm AirGuide.
However, the metal "held up relatively well against the headwinds", analysts at ANZ said in a note.
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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.