UAE: Gold prices see another big drop in Dubai on Thursday

September 28, 2023

FILE - In this Aug. 8, 2011 file photo a person touches gold bars in the gold store of the Cantonal Bank of Zurich ZKB in Zurich, Switzerland. In Switzerland, a campaign is on to protect the country?s wealth by investing in gold _ a lot of gold. In a test of their sense of financial security, the Swiss are being asked to vote on a proposal to make the central bank hold a fifth of its reserves in gold within five years. That would mean buying 1,500 metric tons, or 1,650 short tons, of gold worth more than US$60 billion. (AP Photo/Keystone, Martin Ruetschi) EDITORIAL USE ONLY, NO SALES, NO ARCHIVES

Gold prices continued their losing streak, dropping to Dh227.0 per gram at the opening of the markets in the UAE on Thursday.

The Dubai Jewellery Group data showed 24K trading at Dh227.0 per gram on Thursday at 9am as compared to last night’s close of Dh228.5 per gram. Similarly, 22K fell to Dh210.25, 21K to Dh203.5 and 18K to Dh174.5 per gram.

Globally, spot gold was down 0.15 per cent to $1,874.8 per ounce by 9.10am UAE time, after shedding 1.4 per cent, its biggest daily decline in two months, on Wednesday.

Vijay Valecha, chief investment officer, Century Financial, said the market is adjusting to the possibility of rising interest rates, and as a result, gold saw a decrease.

“The US dollar reached a 10-month high against major currencies and the simultaneous increase in Treasury yields are putting additional pressure on the precious metal. Investors are eagerly awaiting the release of key economic indicators, including the Personal Expenditures (PCE) index and the monthly employment and Consumer Price Index (CPI) reports from the Labor Department. These data releases will play a pivotal role in shaping market sentiment and will determine whether the Federal Reserve continues its current policy path or considers adjustments,” he said.

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