UAE: Gold prices fall sharply, lose Dh6.5 per gram in 24 hours

At 9am local time on Tuesday, the 24K variant of the yellow metal fell to Dh317.0 per gram

Waheed Abbas

Published: Tue 12 Nov 2024, 9:19 AM

Gold prices in the UAE extended their losses on Tuesday morning, losing Dh2 per gram at the opening of the markets following D4.5 per gram drop on Monday.

At 9am UAE time on Tuesday, the 24K variant of the yellow metal fell to Dh317.0 per gram, down from Dh319.0 per gram at the close of the markets on Monday. Among the other variants, 22K, 21K, and 18K opened lower at Dh293.5, Dh284.0, and Dh243.5 per gram, respectively.

Spot gold was trading at $2,617.87 per ounce, up by 0.26 per cent at 9.05am local time.

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Fadi Al Kurdi, founder and CEO of FFA Kings, said gold experienced a decline in reaction to a strong sentiment surrounding the US dollar.

“Anticipation of expansionary policies from Donald Trump has kept the dollar near a four-month peak, weighing on the precious metal. With the greenback strengthening, gold could remain under pressure,” he said.

This week, market participants’ attention shifts to US inflation data and upcoming Federal Reserve speeches, notably remarks from Fed Chair Powell. These events could be critical in assessing the trajectory of interest rates, particularly with expectations surrounding Trump’s second term. Changes in the interest rate outlook could impact gold demand, leading to near-term volatility.

“There is also growing speculation that the Federal Reserve may adopt a more cautious approach to rate cuts in response to Trump’s proposed policies, which include increased tariffs, tax cuts, and deregulation. In the medium to long term, however, gold could remain well-positioned as a safe-haven asset, given the potential uncertainties arising from trade tensions and geopolitical tensions,” said Al Kurdi.

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