Gold prices fell both in the UAE and globally on Monday morning following UBS’s acquisition of Credit Suisse. The move is seen as an effort to contain a banking crisis and stabilize global financial markets. At 9:15 am UAE time, spot gold was down by 0.1% at $1,974.94 per ounce.
In the UAE, the 24K gold price dropped from AED 241.0 per gram at the close of the markets over the weekend to AED 239.25 per gram. Other variants of gold also opened at lower prices, with 22K trading at AED 221.5 per gram, 21K at AED 214.5, and 18K at AED 184.0, according to data from the Dubai Jewellery Group.
UBS announced on Sunday its acquisition of Credit Suisse for $3.23B, with the Swiss government backing the deal through a massive guarantee. The agreement also entails UBS taking on up to $5.4B in losses and is set to be finalized by the end of 2023.
Looking ahead, the focus for the upcoming week will be on the Federal Reserve as it concludes its Federal Open Market Committee (FOMC) meeting on March 22. The central bank will need to decide whether it can continue tightening policy to combat inflation, despite the considerable strain in financial markets.