UAE: Gold prices drop further, losing Dh5 per gram so far this week
On Thursday, gold tumbled to a new near month-low level in Dubai as yellow metal dropped more than two per cent as the US Federal Reserve said it is easing pace of rate cuts for 2025 below $2,600 an ounce.
The 24K version of the metal dropped from Dh316.5 per gram Wednesday night to Dh 315.75 per gram at market open on Thursday at 9am UAE time. : The rate has dropped Dh5 per gram already this week.
The same went for 22K, 21K and 18K which opened at Dh292.5, Dh283 and Dh242.75 gramme respectively. In the rest of the world, spot gold fell almost one per cent to $2,609.24 an ounce. The yellow dropped to $2,589 and re-bouncing back up to just over $2,600 an ounce.
The US Federal Reserve lowered rates 25 basis points Wednesday. The US central bank hinted at two quarter-percentage-point rate hikes in 2025. Investors are weighing the wait and see strategy for US president-elect Donald Trump's White House return next month.
Bas Kooijman, CEO and asset manager of DHF Capital, said focus is now on the trajectory of next year’s interest rates.
‘Macroeconomic policy decisions in the UK and Japan might play into the hands of the market at a wider level. Also, gold can continue to gain upside momentum as strong central bank demand sustains the price," he continued.
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