Gold prices experienced a significant drop in Dubai on Friday evening, with a decrease of nearly Dh8 per gram within a single day. The 24K gold was priced at Dh290.75 per gram, a reduction from Dh298.5 per gram at the market's close, marking a decline of Dh7.75 per gram. Other gold variants, including 22K, 21K, and 18K, were traded at Dh269.25, Dh260.75, and Dh223.5 per gram, respectively.
On a global scale, spot gold prices decreased to $2,406 per ounce on Friday, a drop of 1.46 percent, attributed to profit-taking following a robust surge in the previous weeks. The precious metal briefly dipped below $2,400 per ounce before slightly recovering later. Gold has shown exceptional performance in 2024, outperforming most major asset classes. This performance is attributed to sustained central bank purchases, investment inflows from Asia, robust consumer demand, and ongoing geopolitical uncertainties.
The World Gold Council noted in a recent study, "For gold, we anticipate the catalyst might arise from declining rates in developed markets, attracting Western investment flows, along with ongoing support from global investors aiming to hedge against escalating risks in a complacent equity market and enduring geopolitical tensions. However, gold's prospects are not devoid of risks. A substantial decline in central bank demand or extensive profit-taking by Asian investors could hinder its performance."
