Post by : Bianca
Haleem
On Wednesday, gold prices in Dubai experienced a continuation of their downward trend for the third day in a row. This decline is attributed to weak global bullion movements coupled with a firmer US dollar.
As per data from the Dubai Jewellery Group, the price of 24K gold has fallen to Dh554.75 per gram, down from Dh562.50 reported on Tuesday, and Dh569.50 from Monday, reflecting an overall decrease of Dh14.75 over these three days.
Other categories of gold also exhibited consistent declines:
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22K gold: Dh513.75 (down from Dh520.75 and Dh527.25)
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21K gold: Dh492.50 (down from Dh499.25 and Dh505.50)
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18K gold: Dh422.25 (down from Dh428.00 and Dh433.25)
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14K gold: Dh329.25 (down from Dh333.75 and Dh338.00)
The persistent decline in gold rates in Dubai signals ongoing pressure from the global bullion market.
Global Influences on Gold Prices
Globally, spot gold experienced a slight uptick of 0.2%, reaching $4,602.82 per ounce after dropping to its lowest point since early April. Concurrently, US gold futures ascended to $4,616.40.
Market dynamics are significantly influenced by perceptions that the US Federal Reserve will maintain current interest rates. Elevated rates typically dampen gold demand, as it lacks the yield of interest-earning investments.
Additionally, ongoing geopolitical tensions, particularly concerning conflicts in Iran, are impacting market stability. The uncertainty surrounding peace negotiations and threats in the Strait of Hormuz have sustained high oil prices, with Brent crude remaining over $110 per barrel. An increase in oil prices typically raises inflationary pressures, subsequently affecting gold demand.
A robust US dollar has further constrained gold's upward potential, rendering it pricier for foreign purchasers.
Update on Other Precious Metals
The performance of other precious metals varied:
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Silver: Increased by 1% to $73.82 per ounce
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Platinum: Decreased by 0.3% to $1,933.75
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Palladium: Decreased by 0.2% to $1,457.39
In summary, gold prices in Dubai are experiencing continued pressure as economic and geopolitical factors contribute to market volatility.
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