Dubai gold prices steady after dropping $60 in a month

Gold prices were steady in Dubai and globally on Thursday morning.
The 24K variant of the precious metal was trading at Dh489.25 per gram, slightly up from last night's close of Dh489.75 per gram. It lost around Dh60 per gram in the last one month.

Similarly, the other variants of the yellow metal were also steady, with 22K, 21K, 18K and 14K trading at Dh453.0, Dh434.50, Dh372.25, and Dh290.5 per gram, respectively. Spot gold was trading at $4,060 per ounce at 9.30am UAE time. Silver was down 0.28 per cent at $59.84 an ounce.

Simon-Peter Massabni, Head of Business Development at XS.com, said the continuation of the downward trend in gold prices comes amid weak hopes of reaching a comprehensive settlement in the war in the Middle East, which helps keep pessimism alive about the Federal Reserve's tight monetary policy path.

Furthermore, he said, capital flows do not appear to be meaningfully entering the gold market, as the major physical gold exchange-traded funds have not recorded any inflows in recent days. In addition, weak consumer demand for the yellow metal from individuals could worsen these downward pressures.

“On the geopolitical side, we are still waiting for the interim outcomes, which do not seem to go beyond purely technical levels in implementing the memorandum of understanding. The United States and Iran remain in ongoing disagreement, as publicly announced, which led to skirmishes last week and disruptions during negotiation sessions,” he added.

Written by

Waheed Abbas

Waheed Abbas is Assistant Editor, covering real estate, aviation and other business stories that directly affect the lives of UAE consumers. He frequently reports human interest stories, too.