Time to buy? UAE gold prices plunge nearly Dh3 per gram

Gold prices plunged nearly three dirhams per gram in the UAE on Thursday morning after the US Federal Reserve paused rates hikes.

According to Dubai Jewellery Group data, the 24K was trading at Dh234.25 at the opening of the markets as compared to last night’s close of Dh237.0 per gram, down Dh2.75 per gram. Similarly, 22K, 21K and 18K also opened lower at Dh216.75, Dh209.75 and Dh180.0 per gram respectively.

Spot gold was trading in the negative territory at $1,931.98 per ounce at 9.18 am UAE time.

The Fed refrained from raising interest rates at the end of the meeting on Wednesday. However, analysts expect further rate hikes later this year, rising from 5.0-5.25 to a range of 5.50-5.75 per cent by the end of 2023.

The drop in prices will boost demand for the precious metal and its jewellery in the UAE.

The Dubai-based financial services provider Century Financial said a break below $1,930 can instil corrections towards $1,912 followed by $1,890.

Bas Kooijman, CEO and Asset Manager of DHF Capital, said the UAE’s precious metals market, including gold, jewellery, gold bars and silver, was valued at Dh8.52 billion in 2020 and it is expected to reach a value of Dh13.21 billion by the end of the decade at a compound annual growth rate of 3.66 per cent through 2030.

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• Business
• UAE