“UAE Gold Prices Witness Further Decline, Decreasing by Dh3 per Gram in the Last 24 Hours: Is it the Right Time to Buy?”

“UAE Gold Prices Experience Decline, Dropping by One-and-a-Half Dirham: Global Rates Influence Precious Metal’s Value

Gold prices in the UAE witnessed a decrease of one-and-a-half dirham on Wednesday morning, aligning with the global rate drop. The 24K variant of the precious metal opened at Dh245.25 per gram, compared to the previous night’s closing rate of Dh246.75 per gram. Similarly, 22K, 21K, and 18K variants were also trading lower at Dh227.0, Dh219.75, and Dh188.5 per gram, respectively.

The 24K variant of gold has seen a decline of Dh3 per gram since Tuesday morning when it was trading at Dh248.25 per gram, attributed to the continued strengthening of the US dollar. Globally, spot gold dropped by 0.4 percent to $2,020.24 per ounce at 9:22 am UAE time, marking its most substantial single-day decline since December 4, 2023.

Federal Reserve governor Christopher Waller emphasized on Tuesday that, while inflation was nearing the central bank’s 2 percent goal, the Fed should not hastily lower interest rates until sustained lower inflation becomes evident.

Analysts, including Alex Kuptsikevich, senior market analyst at FxPro, attribute the decline in gold prices to the impact of a strengthening dollar following overly optimistic expectations for an interest rate easing cycle set by policymakers in Davos. Kuptsikevich noted that the technical pullback behind the dollar’s strength comes after markets exceeded expectations, anticipating rate cuts at every Fed meeting since March. He added that further dollar strengthening could significantly increase pressure on gold, diminishing its attractiveness against the backdrop of high yields on US bonds supported by the growth of the US currency.”