Dubai: Gold prices drop in early trade as global tensions ease slightly
Among the other variants, 22-karat, 21-karat, and 18-karat fell to Dh373.75, Dh358.25 and Dh307.25 per gram, respectively.
Spot gold was trading at $3,350.2 per ounce, down 0.25 per cent as US President Donald Trump extended the EU tariff deadline to July 9. Earlier, Trump had threatened to impose a 50 per cent tariff on the European Union from June 1.
The yellow metal has been trading on the higher side due to the tariff war between the US, China and other major trading partners.
Citi bank has also revised its short-term gold price target upward to $3,500 per ounce due to tariff escalation and geopolitical risks.
It said in its latest note that it sees precious metal consolidating between $3,100 and $3500 per ounce, up from its previous estimate of $3,000 to $3,300 per ounce.
Linh Tran, a market analyst at xs.com, said market sentiment currently leans toward a "soft landing" scenario for the US economy.
'As a result, investors may be rebalancing their defensive positions, triggering profit-taking in gold after a strong three-day rally. However, gold's pullback remains contained within technical boundaries, reflecting that the selling pressure is temporary rather than a signal of a trend reversal,' said Tran.
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