UAE: Gold prices slip further as tariff row, geopolitical tensions ease
Gold prices slipped slightly at the opening of the markets in Dubai on Wednesday.
According to Dubai Jewellery Group data, the 24-karat dipped to Dh388.25 per gram. The 22-karat, 21-karat, and 18-karat variants opened lower at Dh359.75, Dh345, and Dh295.5 per gram, respectively.
Spot gold was trading at $3,226.59 per ounce, down 0.5 per cent. Vijay Valecha, chief investment officer of Century Financial, said gold fell due to optimism around the US-China trade deal.
"Improved risk sentiment following the announcement of a temporary deal between the United States and China to reduce tariffs dragged the safe-haven asset's price lower. Additionally, it was reported that the US will cut 'de minimis' tariffs on China shipments from 120 per cent to 54 per cent, with a minimum flat fee of $100 to remain,' he said.
On the geopolitical front, Ukrainian President Volodymyr Zelensky noted he is prepared to meet Russian President Vladimir Putin this week, shortly after US President Donald Trump urged him to 'immediately' accept the Russian leader's offer to hold peace talks in Turkey. Any signs of escalating tensions could boost the safe-haven flows, benefiting the yellow metal.
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