Gold prices dip after gaining over Dh2 per gram in the previous session
After rising by more than Dh2 per gramme the previous session, gold prices in the UAE have fallen.
After the US April employment report was released, the price of yellow metal retraced from its earlier gains.
After rising by over Dh2 per gramme on Monday, gold prices in the UAE fell by half a dirham per gramme on Tuesday morning.
Compared to Monday's closing price of Dh281.75 per gram, the 24K yellow variant opened Tuesday's markets at Dh281.25 per gram. As for the other varieties of the yellow metal, their respective prices were Dh260.5/g, Dh252.0/g, and Dh216.0/g.
Monday saw a gain of Dh2.25/g of the yellow metal. By 9.30 am UAE time, spot gold had fallen 0.18 percent to $2,322.16 per ounce.
Investors were betting that the US Federal Reserve will cut interest rates later this year and that tensions in the Middle East region would lead to higher prices for the yellow metal earlier in the day.
Noor Capital's chief market strategist Mohamed Hashad said that after the US April employment report was released, the price of yellow metal retraced from earlier gains.
The bullish sentiment on Wall Street weighed on gold's position as a shelter asset. An important development is the downward trend in US Treasury bond yields; the benchmark 10-year bond yield fell seven basis points. Hashad added that at the same time, US yearly bond yields—which move in the opposite direction of gold prices—fell 6.25 percentage points, from 2.219 percent to 2.14%.
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