Gold prices in the UAE experienced a Dh1 drop per gram in early trade on Thursday, following a gain of over Dh2 per gram the previous day.
Data from the Dubai Jewellery Group indicated that 24K gold was trading at Dh236 per gram as of 9 am UAE time, a slight decrease from Wednesday’s closing price of Dh237 per gram. Other gold variants, namely 22K, 21K, and 18K, also opened lower, priced at Dh218.5, Dh211.5, and Dh181.25 per gram, respectively.
Wednesday had witnessed a significant rise in gold prices, with the 24K variant jumping by Dh2.25. On the global front, spot gold was down by 0.14 per cent, standing at $1,948.3 per ounce by 9.23 am UAE time.
Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, highlighted gold’s resilience by surging above its 200-day moving average despite external pressures such as the rising US yields. Ozkardeskaya stated, “The yellow metal remains a robust hedge against volatile assets, particularly when there’s a decline in market appetite.”
Zain Vawda from dailyFX attributed Wednesday’s gains to heightened risk aversion among market participants. He commented, “A hospital explosion in Gaza, with ensuing blame traded between Israel and Palestine, fueled concerns of an escalating conflict. This unrest significantly influenced gold’s surge toward the $1950/oz mark.”
The volatile geopolitical environment continues to influence gold’s position as a safe-haven asset among investors.