Dubai: Gold Prices Slip Further 24K At Above Dh400 Per Gram

Gold prices slipped at the opening of the markets in Dubai on Tuesday but the 24-carat stayed above Dh400 per gram .

Dubai Jewellery Group data showed the 24-carat trading at Dh401.25 per gram on Tuesday morning, down from Dh402.5 per gram at the close of the markets on Monday. It has lost Dh3.5 per gram this week so far.

Among the other variants of the precious metal, the 22-carat was trading lower at Dh371.75 per gram, the 21-carat at Dh356.25 and the 18-carat at Dh305.5 per gram.

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Spot gold was trading at $3,331.7 per ounce, down 0.28 per cent.

Despite a slight drop in prices this week, analysts expect prices will stay on the higher side.

Vijay Valecha, chief investment officer at Century Financial, said the yellow metal ended last week with a gain of almost 5 per cent amidst US President Donald Trump's threats to impose 50 per cent tariffs on goods from the European Union from June 1 and 25 per cent on Apple Inc., if it does not manufacture iPhones in the US.

“The demand was further influenced by escalating concerns regarding America's fiscal deficit, with the tax cut bill exacerbating the deficit and the associated Moody's credit rating downgrade. These factors have fueled a risk-on sentiment, leading the bullion to surge by almost 27 per cent this year. Additional factors contributing to the support of gold include ETF inflows and ongoing geopolitical tensions in the Middle East. Central banks worldwide have been increasing their gold reserves by over 1,000 metric tonnes annually for the past three years, nearly double the last decade's average,” he said.

“Technically, on the daily chart, a bullish engulfing candlestick was formed in the previous session, closing at $3,356, indicating strong continued demand for the asset,” he said.

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