UAE: Gold prices plunge nearly Dh2 per gram in Dubai

Prices were pushed lower by the drop in global rates due to uncertainty surrounding the US debt ceiling situation

by

Waheed Abbas

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Published: Thu 25 May 2023, 9:56 AM

Gold prices plunged nearly two dirhams per gram in Dubai at the opening of the markets on Thursday, pushed lower by the drop in global rates due to uncertainty surrounding the US debt ceiling situation.

According to Dubai Jewellery Group data, the 24K was trading at Dh237.25 per gram on Thursday morning as compared to last night’s close of Dh239.0.


Among the other variants of the precious metal, 22K opened at Dh219.5, 21K at Dh212.5 and 18K at Dh182.25 per gram.

Spot gold was trading at $1,957.48 per ounce by 9.30 am UAE time, down by 0.14 per cent.


Bullion has been attempting to recover from its previous sell-off, but a stronger dollar and higher US Treasury yields continue to keep the upside in check, which seems to override safe-haven flows around the US debt ceiling situation, said Yeap Jun Rong, a market analyst at IG.

US Treasury Secretary Janet Yellen on Wednesday maintained early June as a debt ceiling default deadline and said she will update Congress shortly about government finances.

Negotiators for Democratic President Joe Biden and top congressional Republican Kevin McCarthy held what both sides called productive talks on Wednesday to try to reach a deal to raise the United States' $31.4 trillion debt ceiling and avoid a catastrophic default.

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