Dubai gold prices set to end the week lower
Dubai: Gold prices have had a tough week as elevated energy prices and inflation concerns drove bond yields higher and fuelled expectations of another Fed hike. In the UAE, prices of 24-karat gold have remained the same at Dh514.25 versus the pervious day’s close. If you were to compare gold prices in the last 28-days, prices have fallen sharply, where 24-karat gold was prices at Dh554.50 on…
Dubai's gold prices have witnessed a decline over the past week due to elevated energy prices and inflation concerns, which have led to higher bond yields and expectations of another Federal Reserve rate hike. The 24-karat gold price remained unchanged at Dh514.25, while the prices for similar gold grades over the last 28 days have fallen significantly, with a 40-dh difference observed in just over a month.
Currently, 22-karat gold is traded at Dh476.25 per gram, and 14-karat gold is nearing the Dh300 mark at Dh305.25. Gold prices have ticked up on Friday, nearing $4,300 an ounce, though they remain around 2% lower than the previous Friday. The recent gold price movements have largely followed energy prices and bets on further Federal Reserve rate increases, as rising borrowing costs negatively impact bullion due to its lack of yield.
Despite macroeconomic challenges, gold has remained above the June-July lows near $4,000, and there has been no significant investor liquidation. Head of Commodity Strategy at Saxo Bank, Ole Hansen, notes that there is little evidence of liquidation accompanying the sharp rise in real yields. Still, investors are betting that gold will continue to rise gradually as it regains its traditional value as a portfolio hedge.
Silver, platinum, and palladium also saw slight changes in price during the week. The Bloomberg Dollar Spot Index remained stable after five days of gains.
Written by urgent.news from Gulf News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
