Gold prices experienced a slight decrease during the opening of the markets in the UAE on Wednesday, following a gain of Dh1.25 per gram the previous day. Data from the Dubai Jewellery Group indicated that the 24K gold was trading at Dh280.0 per gram at 9am UAE time, marking a decline of Dh0.25 per gram. Meanwhile, the 22K, 21K, and 18K gold were priced at Dh259.25, Dh251.0, and Dh215.25 per gram, respectively. Gold prices have increased by over Dh2 per gram since the beginning of the week in the UAE, with prices rising for two days in a row. Globally, gold was trading at $2,313.09 per ounce, showing a slight decrease of 0.09%. Chris Weston, the head of research at Pepperstone, noted that gold has been fluctuating within a range of $2,433 to $2,280 since mid-April. He expressed that the current range could hold until there is clarity on its investment case, highlighting that despite high equity prices, low market volatility, and minimal need to increase gold holdings due to economic fragility, gold prices are holding steady. Conversely, Weston mentioned that with the People’s Bank of China reducing its gold reserve increases, geopolitical news becoming less impactful, and US real rates and the US dollar remaining stable, the impetus to push gold prices higher is limited. Therefore, the market requires a compelling reason to shift to an overweight position, or the current range may persist in the short term. Looking at the medium term, Weston sees a higher potential for upside rather than downside.
Text: Lara Palmer
12.06.2024
24K Gold Prices Fall by Dh0.25 Per Gram Following Two Consecutive Days of Gains in the UAE