Gold prices took a significant tumble at the market’s opening in the UAE on Tuesday, shedding more than Dh10 per gram within the last 24 hours.
According to data from the Dubai Jewellery Group, the 24K variant of gold experienced a drop of Dh4 per gram from Monday morning to trade at Dh279.25 per gram on Tuesday, compared to Dh283.25 per gram at Monday’s market close. This marks a total decline of Dh10.25 per gram since the start of Monday.
Other variants of the precious metal also saw declines, with 22K opening at Dh258.5, 21K at Dh250.25, and 18K at Dh214.5 per gram.
According to a Khaleej Times report, at 9:05 am UAE time on Tuesday, spot gold fell by 1.19 per cent to $2,305.84 per ounce, as investors opted to take profits following a robust rally in recent months and easing tensions in the Middle East region.
Vijay Valecha, Chief Investment Officer at Century Financial, attributed the retreat of gold prices to a decrease in geopolitical tensions in the Middle East.
“The bullion has enjoyed a 5-week rally – which marks its longest winning streak in over a year. Haven’s demand for the precious metal moderated after the Iranian regime downplayed Israel’s counterattack and did not signal retribution,” Valecha stated.
He also noted that market focus has now shifted to the economic calendar, particularly the upcoming release of the US Federal Reserve’s preferred inflation gauge, the PCE Price Index report, expected later this week on Friday.
“Analysts expect a slight uptick in March’s reading to 2.6 per cent from February’s growth rate of 2.5 per cent. This would typically be a bearish signal for gold, although the precious metal is up nearly 15 per cent as of Monday this year despite the prospect of a delayed Fed pivot to rate cuts. Gold prices have advanced despite a stronger greenback and higher treasury yields as the commodity was propped up by haven demand, central bank purchases, and a revival in demand from Asia,” added Valecha.
