Gold prices in the UAE maintained their downward trajectory on Wednesday, shedding more than Dh3 per gram at the market opening. According to data from the Dubai Jewellery Group, the price of 24K gold slipped to Dh519.25 per gram, down from the Dh522 per gram recorded at the close of trading on Tuesday. This latest decline marks a total loss of nearly Dh39 per gram over the past nine days.
The broader precious metals market reflected this volatility, with spot gold falling below the $4,400 threshold. It was trading at $4,304 per ounce, representing a decline of approximately one percent during early trade.
Current Gold Rates by Karat
- 22K: Dh480.75 per gram
- 21K: Dh461.0 per gram
- 18K: Dh395.0 per gram
- 14K: Dh308.25 per gram
Simon-Peter Massabni, head of business development at xs.com, noted that gold is facing renewed downward pressure due to the significant impact of high Treasury yields. These yields impose a substantial opportunity cost that continues to hinder the metal’s ability to maintain its recent upward momentum.
Market sentiment has been further dampened by pessimism regarding the Federal Reserve’s monetary policy for the remainder of the year. Following critical remarks from Kevin Warsh at Jackson Hole last Friday, investors are increasingly favoring more restrictive interest rate paths. Current figures from the CME FedWatch Tool indicate a nearly 47 percent probability that the Fed will implement a rate hike exceeding half a percentage point.
Warsh emphasized that inflation risks remain elevated and that existing monetary conditions are not sufficiently tight, a sentiment that has revived the negative influence of high yields on gold prices. Furthermore, Massabni highlighted that geopolitical tensions, specifically the return of skirmishes in the Middle East and renewed friction between the US and Iran—including a US strike on two rocket launchers on Lark Island—have exacerbated market instability. The report also notes that it has lost nearly Dh39 per gram in 9 days. The report also notes that trump vows to hit Iran ‘hard’ after first exchange of fire in a month. The report also notes that sharjah Police confirm deaths of two Kazakh sisters reported missing. The report also notes that iran will reciprocate if US returns to MoU commitments: Pezeshkian. The report also notes that uS military say struck IRGC targets in Iran after attacks on shipping in Hormuz. The report also notes that e&: Compare cost, network speed, packages in UAE, starlink vs du. The report also notes that stay up to date with the latest news.
Source: Khaleej Times
