Gold prices in the UAE have lost one-and-a-half dirhams per gram at the opening of the markets in Dubai on Tuesday, dropping from an all-time high of AED313.5 per gram at the close of the markets on Monday.
According to Dubai Jewellery Group data, the 24K variant was trading at AED312.0 per gram at 9 am UAE time. Among the other variants, 22K, 21K and 18K opened lower at AED289.0, AED279.75 and AED239.75 per gram, respectively. Globally, spot gold was trading at $2,575.9 per ounce at 9.10am UAE time, down 0.3 per cent.
Some analysts believed that the price decline was due to investors selling their gold to secure profits following a period of strong price increases.
Traders were advised to exercise caution until the Fed’s meeting on Wednesday. Market attention will also shift to upcoming policy updates from the Bank of England (BoE) and the Bank of Japan (BoJ) later this week, which could introduce further volatility and impact gold prices.
Experts emphasized that the precious metal could maintain its bullish trend led by demand from central banks, investor concerns about the US elections, and that risks of an economic slowdown are likely to continue to support gold’s appeal as a safe-haven asset.
