National Tourism Strategy 2031 aims to increase the contribution of the UAE tourism sector to the national GDP to Dh450 billion
business2 days ago
Gold prices slipped in the UAE on Tuesday morning after precious metal prices fell globally, weighed down by the prospects of the US reaching the debt ceiling deal and strengthening of the dollar.
According to Dubai Jewellery Group data, the 24K was trading at Dh234.75 per gram at the opening of the markets on Tuesday morning, down half a dirham from last night’s close. Similarly, 22K, 21K and 18K variants of the yellow metal were trading at Dh217.5, Dh210.5 and Dh180.5 per gram, respectively.
Globally, the spot gold price was down at $1,935.8 per ounce, down by 0.31 per cent, at 9.37 am UAE time.
Ipek Ozkardeskaya, senior analyst, Swissquote Bank, said the strong dollar continues weighing on gold appetite.
US President Joe Biden said on Monday he feels good about prospects for passage by Congress of the debt ceiling deal that he reached with House of Representatives Speaker Kevin McCarthy.
High volatility events such as the US regional banking crisis, and whether or not an agreement would be reached on raising the US debt ceiling are now passing, "reducing the market's interest in gold as investors seek alpha," Michael Langford, director at corporate advisory AirGuide said.
Fed officials on the other hand have in recent days turned up the heat, with a hawkish outlook on interest rates – and that has to some extent also offset safe-haven flows around the US debt ceiling situation as higher interest rates dull the appeal for zero-yield bullion.
Having navigated the financial crisis of 2008, Minneapolis Fed President Neel Kashkari worries about systemic risks. But now, as a US monetary policymaker, he worries even more about inflation.
"If later in the year a more dovish approach is taken, this then implies some level of easing of interest rates may occur, which will be seen as bullish for equities and also reduce the desire for investors to hold gold versus other more risk-on-asset classes," Langford added.
ALSO READ:
National Tourism Strategy 2031 aims to increase the contribution of the UAE tourism sector to the national GDP to Dh450 billion
business2 days ago
Customer deposits and Islamic customer deposits increased by 2.5% to reach Dh39.5 billion
business2 days ago
Annual rents in Dubai are usually paid in two, four or six instalments via post-dated cheques
business3 days ago
Saudi Arabia has begun to explore extracting lithium from sea water
business3 days ago
RPM reported net profit of Dh49.39 million during 2023
business3 days ago
Both parties must be taxable; or become taxable as a result of the transfer
business3 days ago
Values reach an annual $2.6 billion in gross written premiums
business3 days ago
The special incentive allows eligible companies to obtain interest-free loans of a maximum of Dh300,000 with a grace period of 6 to 12 months
business4 days ago