Gold prices in Dubai continued their downward trend on Wednesday morning, with the precious metal losing up to Dh0.75 per gram.
According to the Dubai Jewellery Group, the price of 24K gold fell to Dh315.50 per gram, down from Dh316.25 at the close of the markets on Tuesday. This marks a decline of Dh8 per gram so far this week, continuing a recent pattern of price reductions.
The price drop was not limited to 24K gold alone. Other popular variants also saw a decrease in value. The 22K gold dropped to Dh292.25 per gram, 21K to Dh283, and 18K to Dh242.50.
These declines reflect a broader trend in the precious metals market that has seen investors adjusting their positions in light of changing economic conditions.
While the local market experiences fluctuations, global prices also reflected a minor decrease. Gold was trading at $2,605.56 per ounce, down by 0.21% globally.
The price movements in Dubai align with the international gold market, which has been affected by a combination of factors, including shifts in investor sentiment, inflationary pressures, and global economic uncertainties.
Analysts suggest that the continued dip in gold prices could be attributed to various global market factors, including the recent strength of the US dollar and rising bond yields, both of which tend to make gold less attractive to investors.
Additionally, concerns over inflation and geopolitical tensions have been causing volatility in commodities markets, contributing to fluctuating gold prices.
Despite the downward trend this week, gold continues to be seen as a safe-haven asset in times of economic uncertainty, and experts believe that long-term investors may still consider the yellow metal a reliable store of value.
However, for those looking to buy gold for personal use or investment, the recent price movements may present an opportunity to purchase at lower prices than seen earlier in the year.
The Dubai jewellery market is one of the largest and most active in the world, with both locals and international buyers flocking to the city to purchase gold and jewellery.
As the market continues to respond to both local and global economic pressures, many are keeping a close eye on how the price of gold will evolve in the coming weeks, especially as the year draws to a close.
For now, gold buyers in Dubai are seeing a window of opportunity to purchase the precious metal at relatively lower prices, while those looking to sell may be facing reduced returns as prices continue to trend downwards.
This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members