• Sat. Jun 15th, 2024

Gold Prices Dip Slightly in Dubai Market Following Recent Surge

Gold prices in the Dubai market experienced a minor drop, shedding one dirham per gram in early morning trading on Thursday. This adjustment followed a noteworthy gain of over two dirhams per gram recorded in the previous session. The dynamics affecting gold prices continue to be influenced by global developments and risk sentiment.

Price Movements: Data from the Dubai Jewellery Group revealed that 24K gold was trading at Dh236 per gram as of 9 am UAE time on Thursday, down from its previous closing price of Dh237 per gram. Similarly, other popular gold variants, including 22K, 21K, and 18K, also opened at lower prices of Dh218.5, Dh211.5, and Dh181.25 per gram, respectively. The notable increase in the price of 24K gold by Dh2.25 just the day before has added to the market’s volatility.

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Global Perspective: On the global stage, spot gold saw a 0.14 percent decrease, bringing its price to $1,948.3 per ounce by 9.23 am UAE time. Analysts have weighed in on the recent surge in gold prices. Ipek Ozkardeskaya, senior analyst at Swissquote Bank, highlighted gold’s ability to act as a reliable hedge during times of increased market uncertainty. It has remained resilient in the face of challenges like surging US yields.

Risk Aversion and Geopolitical Factors: Zain Vawda, analyst at dailyFX, emphasized that gold’s upward trajectory was driven by a growing risk-off sentiment among investors. Recent events, particularly an explosion at a hospital in Gaza, have raised concerns and tensions in the region. Both Israel and Palestine traded blame for the incident, heightening worries about a broader conflict. These geopolitical factors are contributing to the appeal of gold as an asset in times of uncertainty.

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The Dubai gold market, which had witnessed a significant increase in gold prices, has experienced a slight pullback. This fluctuation reflects the delicate balance between global events, risk sentiment, and the metal’s traditional role as a haven during turbulent times. Analysts continue to monitor these dynamics to gain insights into the future movements of gold prices in both the local and international markets.

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