Gold prices declined further as the UAE markets opened on Tuesday, shedding over AED 10 per gram within the last 24 hours.
Data from the Dubai Jewellery Group revealed that the 24K variant of gold saw a decrease of AED 4 per gram on Monday morning, trading at AED 279.25 per gram on Tuesday, compared to AED 283.25 per gram at Monday’s market close. This variant experienced a drop of AED 6.25 per gram on Monday alone, resulting in a total decline of AED 10.25 per gram since Monday morning.
Among other variants, the 22K gold opened at AED 258.5, 21K at AED 250.25, and 18K at AED 214.5 per gram.
At 9:05 am UAE time on Tuesday, spot gold witnessed a 1.19% decrease, trading at $2,305.84 per ounce, as investors opted to book profits following a strong rally in recent months and amid reduced concerns regarding escalating tensions in the Middle East.
Vijay Valecha, Chief Investment Officer at Century Financial, attributed the retreat in gold prices to easing geopolitical tensions in the Middle East. He stated, “The bullion has enjoyed a 5-week rally – marking its longest winning streak in over a year. Haven demand for the precious metal subsided following the Iranian regime’s downplaying of Israel’s counterattack and lack of indication of retaliation.”
Valecha highlighted the shift in focus to the economic calendar, particularly with the upcoming release of the US Federal Reserve’s preferred inflation gauge, the PCE Price Index report, scheduled for Friday. “Analysts anticipate a slight increase in March’s reading to 2.6% from February’s growth rate of 2.5%. While this would typically signal bearish sentiment for gold, the precious metal has surged by nearly 15% this year as of Monday, despite the possibility of a delayed Fed pivot to rate cuts,” he explained. “Gold prices have risen despite a stronger dollar and higher treasury yields, supported by haven demand, central bank purchases, and renewed demand from Asia,” Valecha added.
