Dubai: Gold prices dip in early trade but remain on higher side
Gold slipped as the markets opened in Dubai on Thursday, but remains uptrend.
The 24K settled at Dh322 per gram at 9am, UAE time, from Dh322.25 per gram at market close on Wednesday. It added Dh1.75 a gram on Wednesday.
22K, the yellow metal, lost Dh0.25 to Dh298 per gram in Thursday’s morning session from Dh1.50 per gram the previous day. Also, 21K and 18K opened lower Dh288.50 and Dh247.25 per gram respectively. Gold closed at $2,659.96 an ounce globally, up 0.14 per cent.
Investors and market participants were looking at possible revisions to President-elect Donald Trump’s tariff strategy, said Tito Iakopa, commercial director at FlowCommunity.
"Contrary to talk of more tame trade policy, Trump shot down those rumors and is part of the reason US trade policy is still in flux. Also, the yield on 10-years was still high which may hurt the price of gold," he said.
The reasons why gold is still in demand include geopolitical concerns and central bank demand, Iakopa continued.
"Trump’s tariffs and protectionist policies would drive up inflationary rates and interfere with global trade, which will further strengthen gold as a safe-haven asset. All of which adds up to gold’s strategic value during a time of economic uncertainty," said FlowCommunity’s commercial director.
Comments