Gold prices in Dubai saw a slight increase on Thursday morning, following a significant drop of nearly Dh10 per gram since Monday night. This decline was driven by a global plunge in gold rates, triggered by the US dollar's surge post-Donald Trump's election victory.
The 24K variant of gold opened at Dh322.75 per gram, marking a Dh0.25 increase compared to Wednesday's close. However, it remains down by nearly Dh10 per gram from this week's peak of Dh332.5 per gram recorded on Monday. Other variants, including 22K, 21K, and 18K, were trading at Dh298.75, Dh289.25, and Dh248.0 per gram, respectively.
Globally, gold was trading at $2,657.52 per ounce, a 0.38% decrease at 9.10am UAE time, reaching a three-week low on Thursday. Samer Hasn, a senior market analyst at XS.com, noted that gold has significantly retreated, falling below $2,700 per ounce in spot trading on Wednesday, erasing November's gains.
Bas Kooijman, CEO and asset manager of DHF Capital, highlighted that with the US dollar continuing its upward trajectory, gold could face near-term downside risks. The uncertainty surrounding Trump's trade policies and geopolitical tensions contributed to fears of disruptions in European trade, potentially keeping the euro's outlook bearish.
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