Latest news with #Dh389
Khaleej Times
20-05-2025
- Business
- Khaleej Times
Dubai: Gold prices plunge further, losing over Dh11 per gram
Gold prices plunged further on Monday afternoon, taking the day's drop to over Dh11 per gram. The Dubai Jewellery Group data showed 24-karat trading at Dh389 per gram, down from Dh400.5 per gram at the close of the markets over the weekend. It was trading at Dh395.25 per gram when markets opened at 9am UAE time. Similarly, 22-karat, 21-karat and 18-karat slipped to Dh360, Dh345.25 and Dh295.75 per gram, respectively. Spot gold fell to $3,234 per ounce, down 2.7 per cent, at 5pm UAE time as the precious metal lost its appeal as a safe haven due to US-China temporarily agreeing to slash tariffs in order to defuse trade war. Vijay Valecha, chief investment officer of Century Financial, said gold's Friday rally was short-lived as prices stuck to intraday losses through the Asian session on Monday, and the latest optimism over a US-China trade deal undermined demand for traditional safe-haven assets. 'The US and China will temporarily lower tariffs on each other's products… in a move to cool trade tensions and give the world's two largest economies three more months to resolve their differences,' he said. The combined 145 per cent US levies on most Chinese imports will be reduced to 30 per cent including the rate tied to fentanyl by May 14, while the 125 per cent Chinese duties on US goods will drop to 10 per cent, according to the statement and officials in a briefing Monday. 'This, along with the Federal Reserve's pause on rate cuts, assisted the US dollar to stand firm near a multi-week top, exerting pressure on the commodity.' On the geopolitical front, Valecha added that risks have shown tentative signs of easing. Russian President Vladimir Putin has agreed to hold direct talks with Ukrainian President Volodymyr Zelenskyy on May 15, without preconditions. Meanwhile, Hamas announced plans to release Edan Alexander, the last known American hostage held in Gaza, and confirmed it will engage in direct discussions with the US aimed at achieving a ceasefire and resuming humanitarian aid. 'Looking ahead, the spotlight shifts to upcoming US inflation data and a key speech from Federal Reserve Chair Jerome Powell on Thursday. These events are likely to offer fresh insights into the Fed's monetary policy path and could play a pivotal role in shaping gold's trajectory in the near term,' added Valecha. He added that the yellow metal could test the psychological $3,200 level, followed by the $3,163 level. Resistance can be seen at $3,300, and any recovery above this level can solidify bullish momentum.
Khaleej Times
16-04-2025
- Business
- Khaleej Times
Dubai: Gold prices hit fresh all-time high, reach Dh399 per gram
Gold prices rallied to a new record high on Wednesday evening, crossing $3,300 per ounce globally just shy of Dh400 per gram in Dubai. The precious metal prices zoomed past $3,300 per ounce due to the escalating US-China tariff war and a weaker dollar. It was trading at $3,310 per ounce, up 2.7 per cent at 7pm on Wednesday. In Dubai, 24K was just shy of Dh400 per gram, trading at Dh399.0, up from Dh389 at the start of the week, gaining Dh10 per gram since Monday. Among the other variants, 22K, 21K and 18K jumped to Dh369.5, Dh354.5 and Dh303.75 per gram, respectively. The UN Trade and Development (UNCTAD) on Wednesday warned that the world economy is on a recessionary trajectory, driven by escalating trade tensions and persistent uncertainty. If the global tariff war between the US, China and other countries escalates further, analysts expect the safe-haven metal will continue to gain further. Financial institutions recently raised gold price forecasts to around $3,700 by the year-end and $4,000 by mid-2026. 'An impressive 25 per cent year-to-date rally has seen the spot gold price reach our 2025 target of $3,300 well ahead of schedule, raising the question of where do we go next?,' said Ole Hansen, head of commodity strategy, Saxo Bank. He said gold 'has been on a tear' since Q4 2022 as geopolitical tension between Russia-Ukraine and Israel-Hamas war added to already strong demand for yellow metal from central banks seeking to diversify and de-dollarise their reserves. 'In the short to medium term, a combination of heightened global economic tensions, the risk of stagflation — a combination of lower employment, growth, and rising inflation — a weaker dollar, may continue to support bullion,' he said. Vijay Valecha, chief investment officer at Century Financial, said US President Donald Trump's tariff policies have resulted in heightened uncertainty, undermining the usual safe-haven appeal of both US treasuries and the dollar. 'Despite the recent 90-day tariff pause followed by the weekend announcement of exemptions on consumer electronics and semiconductors, separate sector-specific duties on these products are expected soon. Moreover, there remains a risk of trade wars with key partners, particularly China — which has kept the markets on edge. The subsequent flight to safety has supported gold, which has risen by more than a fifth this year,' he said. Linh Tran, a market analyst at said the escalating trade war between the US and China is a key factor supporting gold prices. 'Trump has officially imposed tariffs of up to 145 per cent on Chinese goods, while China responded immediately with retaliatory tariffs of 125 per cent on US products, declaring it is ready to 'fight to the end'', Tran said. 'However, Trump's trade policy stance has shown signs of inconsistency, making market predictions more difficult. Earlier this week, he unexpectedly announced exemptions for smartphones and certain electronic devices from the high-tariff list, which fuelled a rally on Wall Street. He also hinted at the possibility of granting tariff exemptions for automobiles, raising hopes that negotiations could resume in some sectors. Nonetheless, this inconsistency in Trump's policy direction is generating significant uncertainty over US economic strategy, leading to a sharp decline in global risk appetite. In such a context, gold continues to be favoured as a safe-haven asset,' she said.
