Gold prices plunge Dh10 per gram in Dubai in 24 hours

Gold prices

Gold prices experienced a significant decline in the UAE market, with experts attributing the drop to diminishing geopolitical tensions in the Middle East. According to data from the Dubai Jewellery Group, the price of 24K gold fell by Dh10 per gram within a span of 24 hours.

On Monday morning, the 24K variant saw a decrease of Dh4 per gram, trading at Dh279.25 per gram on Tuesday compared to Dh283.25 per gram the previous day. This marked a total decline of Dh10.25 per gram since Monday morning. Similarly, other variants of gold also witnessed declines, with 22K opening at Dh258.5, 21K at Dh250.25, and 18K at Dh214.5 per gram.

The drop in gold prices can be attributed to various factors, including profit booking by investors after a prolonged rally and easing concerns regarding escalating tensions in the Middle East. Spot gold experienced a 1.19 percent decrease, trading at $2,305.84 per ounce on Tuesday morning.

Vijay Valecha, Chief Investment Officer at Century Financial, highlighted that the retreat in gold prices was influenced by the reduction in geopolitical tensions in the Middle East. He noted that despite a 5-week rally, gold prices moderated as the Iranian regime downplayed the possibility of retaliation against Israel.

With attention shifting towards economic indicators, particularly the US Federal Reserve's PCE Price Index report, analysts anticipate a slight uptick in inflation. However, Valecha emphasized that gold prices have remained resilient despite factors such as a stronger US dollar and higher treasury yields. This resilience can be attributed to continued haven demand, central bank purchases, and increased demand from Asia.

In summary, the decline in gold prices in the UAE market reflects a combination of factors, including easing geopolitical tensions and profit booking by investors. Despite short-term fluctuations, gold continues to be influenced by broader economic factors and remains a key asset for investors seeking stability amidst market uncertainties.