UAE: Gold prices drop; 24K sells at Dh221 per gram

Spot gold fell to $1,824.71 per ounce at 9.25 am UAE time.


A Staff Reporter

Published: Mon 3 Jan 2022, 9:36 AM

Gold prices fell in the UAE on Monday morning, boosting demand for the safe-haven precious metal amidst Omicron-driven surge in Covid-19 infections.

Spot gold fell to $1,824.71 per ounce at 9.25 am UAE time, down by 0.21 per cent.

In the UAE, the 24K price fell Dh0.75 per gram to Dh221.0 at the opening of the market. While 22K, 21K and 18K variants of the precious metal were trading at Dh207.75, Dh198.25 and Dh169.75 per gram, respectively.

According to Reuters' technical analyst Wang Tao, spot gold faces a resistance at $1,830 per ounce, and it may hover around this level or retrace towards a support at $1,815

"Gold prices would not free-fall as real rates and real yields would remain very close to zero until the coast is all clear from the strains of Covid-19," Phillip Futures analyst Avtar Sandu said in a note.

He said continued focus on the Ukraine border with Russia had brought investors’ interest back to gold as a safe haven, and a weaker dollar provided further support to the yellow metal.

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