Dubai gold prices drop as precious metal slips below $3,300
Gold prices in Dubai were trading below Dh400 per gram at the opening of the markets on the first trading day of the week as global rates fell below $3,300 per ounce.
At 9am UAE time, the 24K variant opened at Dh397.5 per gram, down from Dh400 per gram over the weekend.
Among the other variants, 22K, 21K and 18K were trading at Dh368.25, Dh353.0 and Dh302.5 per gram, respectively.
Globally, gold was trading at $3,300.33 per ounce, down 0.97 per cent. It slipped below $3,290 in early trade.
The yellow metal recently surged to all-time highs, fuelled by geopolitical uncertainties stemming from the US-China trade war and the increased weaponisation of the dollar in international financial sanctions.
Ahmad Assiri, research strategist at Pepperstone, said despite a reduced need to hedge against the tariff news flow or the removal of Fed chief Jerome Powell by US President Donald Trump, the fundamental backdrop still supports elevated gold prices.
'Should the US data flow deteriorate as many expect, a recession will soon become the market's base case, and suggest easing (from the Fed) of monetary policy would also support gold's investment case. Recent communication from Fed officials emphasises an uncertain outlook for monetary policy, but most have detailed that they will be prepared to act and cut rates if the data does weaken,' he said.
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