Dubai: Gold prices slip in early trade; 22k down to nearly Dh336
Gold prices continued to trend lower on Tuesday, as the 22K variant of the yellow metal slipped to nearly Dh336 per gram.
At 9am, 24K was trading at Dh363.25 per gram, while 22K opened at Dh336.25. Similarly, 21K and 18K were trading at Dh322.5 and Dh276.5 per gram, respectively.
Spot gold was trading at $3,018.11 per ounce, up 0.3 per cent in early trade.
Inki Cho, financial markets strategist consultant to Exness, said potential developments around a cease-fire agreement in Eastern Europe could weigh on gold.
'However, an increase in tensions in the Middle East could counterbalance the impact and help support gold prices and a return to the upside. Additionally, trade policy uncertainty remains a key driver for gold, as tariffs have raised concerns over US economic stability,' he said.
Alex Kuptsikevich, chief market analyst at the FxPro, said gold has been in an uptrend since the beginning of March, and the rally accelerated as gold hit new highs at the end of last week when the spot price hit a new record of $3,057.
'We see this breakout as the start of a new expansionary momentum with an upside potential of $3,180 per ounce, which represents 161.8 per cent of the upside momentum from the start of the year to the February peak. The alternative view is also bullish. According to it, gold has completed a correction since the beginning of the year, following the rally from October 2023 to November 2024,' said Kuptsikevich.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Khaleej Times
03-06-2025
- Khaleej Times
Dubai: Gold prices slip in early trade after jumping over Dh10 per gram
Gold prices slipped Dh1.5 per gram on Tuesday after jumping over Dh10 on Monday. The 24K variant of the precious metal rose Dh10.5 per gram to Dh406.75 on Monday but slipped to Dh405.25 per gram on Tuesday morning. Meanwhile, 22K, 21K and 18K were trading at Dh375.25, Dh359.75 and Dh308.5 per gram, respectively. Spot gold was trading at $3,361.67 per ounce, down 0.35 per cent. Dilin Wu, research strategist at Pepperstone, said gold extended its choppy trading pattern from mid-April last week, with bearish pressure dominating. 'A series of developments — including shifting White House rhetoric on EU tariffs, resilient US data, changing market sentiment on Treasuries, and legal challenges to tariff legitimacy — have all contributed to the recent price swings... Gold remains range-bound between $3,170 and $3,430, with downward momentum still in control,' said Wu. Looking ahead, she said uncertainty around the legal path of US tariffs and the trajectory of the tax bill will likely keep gold supported on dips, while resilient US data, the Fed's reluctance to shift dovish, and some gold selling from China on Friday may cap upside momentum. Inki Cho, financial markets strategist consultant to Exness, said gold prices were bolstered by renewed trade tensions and escalating geopolitical risks on Monday. 'President Donald Trump announced plans to double tariffs on steel and aluminium imports to 50 per cent starting June 4, a decision that comes amid ongoing legal disputes over current tariffs. Markets responded cautiously, seeking shelter in traditional hedges like gold. Further uncertainty emerged after Trump accused China of violating a recent trade truce, prompting a sharp exchange of claims between the two governments,' he said.
UAE Moments
21-05-2025
- UAE Moments
Dubai Gold Prices Drop Dh34 in a Month—More Declines Ahead?
Gold just lost some of its glitter—and your wallet might thank you for it. In just one month, Dubai gold prices have slid Dh34 per gram, falling from Dh420 in April to Dh386 by May 18, according to recent market data. Globally, gold prices have dipped from a record $3,500 per ounce to $3,201, marking an 8.5% drop. But wait—analysts say we could see it slip below $3,000 soon. So what's behind the price drop? It's not magic—it's momentum. Analysts attribute the fall to a rising global risk appetite, easing geopolitical tensions, and progress in US-China trade talks—all of which reduce the demand for safe-haven assets like gold. 'We have seen a strong gold rally from $3,000 to $3,500, fuelled by concerns about tension between the US Federal Reserve and the US President Donald Trump administration, trade war and geopolitical tensions,' said Wael Makarem, financial markets strategist lead at Exness. 'But with things easing on both the trade and geopolitical fronts, risk appetite has improved—and this weighed on the gold price,' he added, noting that gold could drop below $3,000 if stability continues. That growing appetite for risk is visible in stock markets too. Makarem pointed out a 20% rebound in US indices, with European ones also nearing record highs—a clear sign that investors are shifting focus. Ahmed Negm, head of market research for MENA at echoed the sentiment, saying that without fresh optimism in the gold market, 'risky assets such as cryptocurrencies will be in high demand and rise.' Not all experts are hitting the panic button, though. Farah Mourad from Equiti believes the $3,000 mark will act as a 'strong cushion,' especially since central banks and institutional buyers had scooped up gold when it was between $2,800 and $3,000. She suggests the correction was expected: 'We are not worried about this correction because it corrected another momentum that was not that logical.' Ole Hansen, head of commodity strategy at Saxo Bank, confirmed gold is seeing its steepest correction since 2023 but remains optimistic in the long run. 'Several key structural drivers remain intact,' he said, referencing central bank demand, inflation hedging, and global debt concerns as long-term support pillars. Bottom line? If you've been waiting for the gold price to dip before buying, this might just be your moment—but keep an eye on the $3,000 threshold. That's where the real battle begins.
Khaleej Times
20-05-2025
- Khaleej Times
Dubai gold prices drop Dh34 per gram in a month: Will rates fall further?
Gold price is expected to drop below $3,000 per ounce in the near future as risk appetite is growing among investors, reducing demand for safe-haven commodity, say analysts. After hitting an all-time high of $3,500 per ounce on April 22, the precious metal has fallen 8.5 per cent to $3,201 per ounce in nearly a month. In Dubai, prices have fallen around 8.1 per cent or Dh34 per gram to Dh386 on May 18, down from an all-time high of Dh420 in April. The prices have rallied over the past few months due to the central bank's buying, the US tariffs row, and geopolitical tensions around the world. However, as the US and China reached a trade deal, the prices of the yellow metal dropped significantly. 'We have seen a strong gold rally from $3,000 to $3,500, fuelled by concerns about tension between the US Federal Reserve and the US President Donald Trump administration, trade war and geopolitical tensions. With regard to trade uncertainty, we are a little bit more certain because of sub-deals. "Talks are happening to ease geopolitical situations. So, things have eased now with these two developments. Therefore, the risk appetite has improved, and this weighed on the gold price. If things continue to move in the same direction and we don't see a sudden surprise on these fronts, we expect gold to continue sliding and could go even below $3,000, said Wael Makarem, financial markets strategist lead at Exness. 'Risk appetite is significantly growing as we have seen a 20 per cent rebound in US stock indices and similarly European indices are also close to a record. So this shows a significant rebound in risk appetite,' he said. Ahmed Negm, head of market research for Mena at projected that the yellow metal gold will go down below $3,000 in the second quarter of 2025. 'This is because there is no positive sentiment in the gold market. So risky assets such as cryptocurrencies will be in high demand and rise,' said Negm. Farah Mourad, senior market research analyst at Equiti, also sees 'a strong cushion' around the $3,000 level. 'The biggest catalyst in the gold rally was central banks and China bought when gold was $2,800 and even around $3,000. The big institutions followed. But the huge peak that followed and the price reached $3,500, it needed a correction. But we are not worried about this correction because it corrected another momentum that was not that logical. We see strong support around $3,000 and it's good for those who were waiting for the dip to re-enter the market,' she said. Ole Hansen, head of commodity strategy at Saxo Bank, said gold has experienced its sharpest correction in absolute and percentage terms since 2023, breaking through multiple technical support levels. 'Having already hit our 2025 price target of $3,500, we are currently adopting a wait-and-see approach. The market remains between profit-taking from those selling into strength and renewed interest from dip buyers. Despite the recent pullback, several key structural drivers remain intact, including central bank buying, geopolitical risks, fiscal debt concerns, and inflation hedging. These are likely to underpin prices over the longer term, though a period of consolidation may be required before the next significant upside catalyst emerges,' he said.
