UAE: Gold prices fall over Dh5 per gram on Monday amid positive US-China trade talks
As the US Dollar strengthens and the US-China trade talks improve, gold prices dipped over 5 dirhams per gram, resting underneath 400 dirhams in Dubai on Monday morning while the precious metal sits below $3,300 an ounce.
In the UAE time zone at 9 AM, the price for 24-karat was set at 395.25 dirhams per gram as it opened lower than 400.5 dirhams per gram during the last week. Prices for other variants also dropped with 22-karat, 21-karat and 18-karat being 366, 350.75, and 300.75 dirhams respectively.
While spot gold was down 1.5 percent, it is trading at 3,277.53 dollars per ounce. During Sunday, both the US and China ended their trade talks on good terms which is intended to help in lowering the US trade deficit.
Both nations began the trade-war by imposing tariffs on each other which lead to a rise in fears of a global recession.
An analyst in the xs.com market Linh Tran stated that the valuable asset dropped in price because of the progress made in US-China trade negotiations paired with the noteworthy recovery of the US dollar.
The Trump administration is considering cutting tariffs on Chinese goods from 145% down to 50%, which would be a major shift in policy. Markets seem to view this as a possible step toward easing relations after weeks of aggressive tariff increases and retaliatory measures.
“Immediate reaction was a decrease in safe haven assets like gold, while risk appetite for stocks and even currencies increased slightly,” comments Tran.
A factor not related to trade that contributed to gold’s drop was the strong value of the US dollar.
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