Gold prices drop over Dh1 per gram in early trade

Gold prices UAE

Gold prices in the UAE saw a decline of over Dh1 per gram as markets opened on Wednesday morning. At 9 am UAE time, the 24K variant of gold was trading at Dh292.25 per gram, down from Dh294.0 per gram on Tuesday's close. Other variants also showed a decrease, with 22K at Dh270.5, 21K at Dh261.75, and 18K at Dh224.5 per gram.

The drop comes amid global trends, as spot gold was trading at $2,413.3, down 0.34 per cent at 9:15 am UAE time. Market analysts attribute the recent fluctuations in gold prices to various factors, including central bank buying, geopolitical uncertainty, and increased purchases by China.

Shadi Salloum, regional director for Mena at XS.com, advises caution to UAE investors, suggesting they proceed slowly in the market and avoid taking large positions due to gold's sensitive nature.

Mohamed Hashad, chief market strategist at Noor Capital, highlights the significance of cues from the Federal Reserve, with market participants closely monitoring US inflation readings for potential rate adjustments. Anticipated rate cuts, if implemented, are expected to support metal prices, particularly gold, as lower interest rates typically enhance the appeal of non-yielding assets.

The fluctuations in gold prices reflect the dynamic nature of global markets, with investors navigating economic indicators and geopolitical developments to make informed decisions. As uncertainty persists, staying informed and exercising caution remain essential strategies for investors in the precious metals market.