Gold prices in the UAE took a tumble on Thursday morning, dropping nearly Dh5 per gram across different varieties. This follows a three-day decline in global precious metal prices.
The 24K gold, a popular choice in the UAE, opened at Dh287.25 per gram, down from Dh292.0 per gram the previous day. This translates to a decrease of Dh4.75 per gram. Similar drops were seen for other varieties, with 22K, 21K, and 18K falling to Dh266.0, Dh257.5, and Dh220.7 per gram respectively.
The global market weakness seems to be driving the decline in the UAE. As of Thursday morning UAE time, gold was trading at $2,373.01 per ounce internationally, down by 0.4%. This dip comes after the release of minutes from the US Federal Reserve meeting, which suggested some officials are in favor of raising interest rates. Interest rate hikes can make gold, a non-interest-bearing asset, less attractive to investors.
Analysts are watching the situation closely. Diego Colman, a strategist at dailyFX, believes the price could fall further if it breaks below a certain level ($2,375 per ounce). However, he also sees the possibility of a rebound if investor sentiment turns positive.
“If the bulls can hold the price above $2,375, we might see a recovery towards $2,400 or even $2,420 per ounce,” Colman said. “A further breakout could potentially lead to a rally towards the all-time high near $2,450.”
