Gold prices in the UAE experienced a further decline on Friday, with a decrease of nearly Dh3 per gram at the markets' opening. The 24K variant of gold dropped by Dh2.75 per gram, reaching Dh282.75 per gram, down from Dh285.5 per gram at Thursday's market close. Similarly, 22K, 21K, and 18K also commenced lower at Dh261.75, Dh253.5, and Dh217.25 per gram, respectively.
At 9.25 am UAE time, the global trading price for the precious metal was $2,334.6 per ounce. This dip in gold value is attributed to robust US economic data, which has driven up US Treasury yields and bolstered the US dollar against most currencies.
Diego Colman, contributing strategist at dailyFX, stated, “With the US economy performing exceptionally well and inflationary pressures proving more persistent than anticipated, the Federal Reserve is likely to maintain its restrictive policy stance for longer. This scenario of higher interest rates for longer could limit gold's upside potential in the near term, assuming risk aversion remains in check.” Investors are advised to proceed with caution due to unpredictable commodity prices influenced by various global factors. Gold had rallied earlier in the year due to central banks’ purchasing and expectations of the US Federal Reserve reducing interest rates.
