UAE: Gold prices slip from all-time high, lose Dh1.5 per gram

Gold prices lost one-and-a-half dirhams per gram at the opening of the markets in Dubai on Tuesday, dropping from an all-time high of Dh313.5 per gram at the close of the markets on Monday.

According to Dubai Jewellery Group data, the 24K variant was trading at Dh312.0 per gram at 9 am UAE time. Among the other variants, 22K, 21K and 18K opened lower at Dh289.0, Dh279.75 and Dh239.75 per gram, respectively. Globally, spot gold was trading at $2,575.9 per ounce at 9.10am UAE time, down 0.3 per cent.

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Some analysts attributed the drop in prices to profit-taking following a strong rally in the past few trading days. Tito Iakopa, commercial director at FlowCommunity, said gold prices were volatile after hitting a new peak on Monday.

“A weakening dollar and low bond yields supported the asset. Growing expectations that the US Federal Reserve could announce a significant interest rate cut later this week could help maintain gold’s value. Market participants are increasingly betting on a 50 basis point reduction after recent job reports showed a softening labour market,” said Iakopa.

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