Gold prices drop further in Dubai, worldwide; 24K price at Dh210

Waheed Abbas/Dubai
Filed on March 23, 2021
Photo: Reuters

Gold has been losing momentum as economic growth optimism is growing.

Gold prices continued to fall on Tuesday, dragged down by gains in equity markets and the US dollar.

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Spot gold prices fell 0.3 per cent to $1,733.69 per ounce by 0119 GMT (5.19am UAE time). Meanwhile, US gold futures were down 0.1 per cent to $1,736.20 per ounce.

In the UAE, 24K gold was priced at Dh210 on Tuesday morning (versus Dh211.50 on Monday morning); Dh22K at Dh197.25 (versus Dh198.5); Dh21K at Dh188.25 (versus Dh189.25) and 18K at Dh161.25 (versus Dh162.5).

The Swiss bank Credit Suisse said the yellow remains vulnerable to a rise in the US Treasuries yields and gains in the US dollar.

“Gold has been losing momentum as economic growth optimism is growing. In recent weeks, the spike in the US Treasury yields, as well as a rebound in the US dollar, also weighed on gold prices. Moreover, a rapid progress with vaccinations and substantial additional fiscal stimulus have boosted risk appetite. Given this backdrop, gold investors are taking a cautious stance, resulting in sharper exchange-traded fund outflows,” it said.

The Swiss bank noted that gold’s prospects have deteriorated because the greenback is no longer expected to weaken in the near future and US Treasury yields are also expected to continue to rise.

“As a result, our commodity team has lowered gold three-month and 12 months forecasts to $1,750 and $1,700 an ounce, respectively,” it added.

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