Gold prices continued their decline as Dubai’s markets opened on Thursday, following a record-setting high earlier in the week. At 9 a.m.
UAE time, the price of 24K gold fell to Dh310.5 per gram, down from Dh311.25 per gram at Wednesday’s close. This marks a decrease of Dh0.75 per gram and a drop of Dh3 per gram since Monday, when gold prices peaked at Dh313.5 per gram.
Other gold variants also experienced lower prices. The cost of 22K gold fell to Dh287.5 per gram, 21K gold to Dh278.25 per gram, and 18K gold to Dh238.5 per gram. The downward trend reflects a broader adjustment in local market prices following global fluctuations.
Globally, spot gold was trading at $2,567.13 per ounce, a modest increase of 0.31 percent from the previous session. Earlier in the week, gold prices reached $2,589 per ounce.
The fluctuations in global gold prices are reflected in the morning adjustments of local market rates to align with overnight shifts in the international market.
Michael Brown, senior research strategist at Pepperstone, commented on the current gold market dynamics. He highlighted $2,600 per ounce as a significant near-term resistance level, emphasizing its psychological importance as a round number.
“To the downside, the prior range highs at $2,530 an ounce are the most obvious level that the bears will need to break in order to extend any potential downside momentum,” Brown noted.
Brown also addressed the perplexing rise in gold prices this year, which has not fully aligned with traditional market drivers such as risk appetite.
“This leads to the natural conclusion that it is flows, likely from emerging market central banks in large part, which have driven the relentless rise higher, and which continue to fuel significant demand,” he explained.
The drop in gold prices in Dubai comes amid a backdrop of global uncertainty and shifting market conditions.
Investors and analysts alike are closely monitoring these trends to gauge future movements in gold prices, which have been notably volatile over recent months.
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