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Dubai: Gold prices drop after UBS takes over Credit Suisse

On Sunday, UBS agreed to buy Credit Suisse for $3.23 billion and assume up to $5.4 billion in losses in a deal backed by a massive Swiss guarantee

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Gold prices dropped in the UAE and globally on Monday morning with their safe-haven appeal diminished as risk sentiment improved after Swiss lender UBS sealed a deal to buy peer Credit Suisse in a rescue effort to contain a banking crisis and stabilise global financial markets.

Spot gold was down 0.1 per cent at $1,974.94 per ounce, as of 9.15 am UAE time.

In the UAE, the 24K gold price was trading at Dh239.25 per gram, down from Dh241.0 per gram at the close of the markets over the weekend. The other variants of the yellow metal also opened lower.

According to Dubai Jewellery Group data, the 22K was trading at Dh221.5 per gram, 21K at Dh214.5 and 18K at Dh184.0 on Monday morning.

On Sunday, UBS agreed to buy Credit Suisse for $3.23 billion and assume up to $5.4 billion in losses in a deal backed by a massive Swiss guarantee and expected to close by the end of 2023.

In addition, the focus for the week ahead will be on the Federal Reserve which concludes its Federal Open Market Committee (FOMC) meeting on March 22.

The Fed will need to decide whether it can indeed press ahead with tightening policy to carry on its fight against inflation while there is a considerable strain in financial markets.

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