Time to buy? Dubai gold prices drop Filed on May 25, 2021
Photo: ANI

Globally, spot gold was down 0.23 per cent to $1,880.15 an ounce by 8.15am UAE time.

Gold prices fell in Dubai and worldwide on Tuesday morning as investors digested comments by US Federal Reserve officials that sought to assuage inflation concerns.

In the UAE, 24K gold prices fell from Dh228.25 per gram on Monday morning to Dh227.50 at the opening of the trade on Tuesday. Meanwhile, 22K fell from Dh214.25 to Dh213.75; 21K from Dh204.5 to Dh204.0; and 18K from Dh175.25 to Dh174.75.

Globally, spot gold was down 0.23 per cent to $1,880.15 an ounce by 8.15am UAE time.

Despite the drop, the precious metal was still trading close to its highest level in over four months.

Daniel Dubrovsky, the strategist at Daily FX, said over the next 24 hours, gold would likely see some volatility around US conference board consumer confidence data.

Dubrovsky said ongoing dovish commentary that continues to reiterate patience may offer a supportive environment for the yellow metal. However, gains in crypto could risk sapping gold’s potential.

US Fed Governor Lael Brainard, Atlanta Fed President Raphael Bostic, and St. Louis Fed President James Bullard said a surge in prices, due to bottlenecks and supply shortages as the number of Covid-19 cases continue to fall, would not be surprising. However, they also reiterated that any price gains would likely be temporary.

Bullard expects the US inflation rate to be above two per cent in 2021 and 2022.

Staff Reporter

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