UAE: Gold prices plunge Dh10 per gram in Dubai in 24 hours

The yellow metal backtracked as geopolitical tensions abated in the Middle East, say experts

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by

Waheed Abbas

Published: Tue 23 Apr 2024, 9:35 AM

Last updated: Thu 27 Jun 2024, 2:46 PM

Gold prices fell further at the opening of the markets in the UAE on Tuesday, losing more than Dh10 per gram in the past 24 hours.

The Dubai Jewellery Group data showed a 24K variant of the yellow metal losing Dh4 per gram on Monday morning to trade at Dh279.25 per gram on Tuesday as compared to Dh283.25 per gram at the close of the market on Monday. The variant lost Dh6.25 per gram on Monday alone, taking the total drop to Dh10.25 per gram since Monday morning.

Among the other variants of the yellow metal, the 22K opened at Dh258.5, 21K at Dh250.25 and 18K at Dh214.5 per gram.

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Spot gold was down 1.19 per cent at $2,305.84 per ounce at 9.05 am UAE on Tuesday as investors booked profit after a strong rally witnessed over the past few months as well as due to easing concerns of escalation in the Middle East region.

Vijay Valecha, Chief Investment Officer, Century Financial, the yellow metal backtracked as geopolitical tensions abated in the Middle East.

“The bullion has enjoyed a 5-week rally – which marks its longest winning streak in over a year. Haven's demand for the precious metal moderated after the Iranian regime downplayed Israel’s counterattack and did not signal retribution,” he said.

Valecha added that the attention now has shifted to the economic calendar, with the US Federal Reserve’s preferred inflation gauge, the PCE Price Index report, coming out this week on Friday.

“Analysts expect a slight uptick in March’s reading to 2.6 per cent from February’s growth rate of 2.5 per cent. This would typically be a bearish signal for gold, although the precious metal is up nearly 15 per cent as of Monday this year despite the prospect of a delayed Fed pivot to rate cuts. Gold prices have advanced despite a stronger greenback and higher treasury yields as the commodity was propped up by haven demand, central bank purchases, and a revival in demand from Asia,” added Valecha.

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Waheed Abbas

Published: Tue 23 Apr 2024, 9:35 AM

Last updated: Thu 27 Jun 2024, 2:46 PM

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