(MENAFN- Khaleej Times)

Gold prices plunged nearly Dh5 per gram at the opening of the markets in the UAE on Tuesday as 22K fell below Dh450 per gram as the precious metal fell over 1.5 per cent globally in early trade.

At the opening of the markets in Dubai, 24K slipped to Dh483.5 per gram, down from Dh485.75 per gram at the close of the markets on Monday. Similarly, 22K fell nearly Dh2 to Dh447.5 per gram, down from Dh449.75 on Monday. Among the other variants of the yellow metal, 21K and 18K opened at Dh429.25 and Dh368.0 per gram, respectively.

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Spot gold was trading at $4,011.8 per ounce, down 1.5 per cent on a firmer dollar and reduced bets about the US interest rate cuts.

Gold was resilient last week, but it also reflected investor caution ahead of delayed US economic releases following the end of the record government shutdown.

“Officials warned that some October data may never be published, as certain agencies were unable to collect figures during the closure. The uncertainty surrounding these missing indicators has heightened market sensitivity to the next round of economic reports, with any signs of weakness likely to strengthen the case for further Federal Reserve rate cuts, benefiting the precious metal,” said Fadi Al Kurdi, founder and CEO of FFA Kings.

“Still, bullion's upside remained limited by cautious remarks from several Fed officials, who emphasized inflation risks and the relative resilience of the labour market,” he said.

San Francisco Fed President Mary Daly said it was premature to decide on December's policy move, while Minneapolis Fed President Neel Kashkari and Cleveland's Beth Hammack both signaled reluctance toward additional easing.

In addition, geopolitical tensions persisted in Eastern Europe and the Middle East, supporting demand for gold.

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