Gold Prices Remain Under Pressure, 22K Stays Below Dh500 In Dubai

Gold prices remained under pressure in Dubai on Friday morning as 22K stayed below Dh500 per gram.

The 24K gold price was trading at Dh534.75 per gram, down from Dh538.5 per gram at the close of markets on Thursday, losing Dh3.75.

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Among the other variants of the precious metal, 22K, 21K, 18K and 14K slipped to Dh495.25, Dh474.75, Dh407 and Dh317.5 per gram, respectively.

Spot gold was trading at $4,448 per ounce, down 0.6 per cent, heading for a weekly loss due to Middle East tension and US interest rate hike fears.

Silver was down 1.35 per cent at $72.78 an ounce.

Tony Sage, CEO of Critical Metals, said gold prices rose to some extent on Thursday, buoyed by a slight retreat in the dollar and bond yields.

"However, the metal remained close to recent lows as investors face monetary policy risks amid rapidly changing geopolitical conditions in the Middle East. Although tensions in the region remain elevated, recent diplomatic progress has offered some hope that a broader resolution may eventually emerge. A ceasefire agreement between Israel and Lebanon, along with growing political pressure within the US to limit further military involvement, could help ease pressure on gold," he said.

However, as long as tensions remain unresolved, according to Sage, investors are likely to stay focused on the impact on energy markets, inflation expectations, and monetary policy.

"Elevated oil prices reinforce concerns that major central banks may need to maintain a restrictive stance for longer, placing selling pressure on the precious metal," added Sage.

Looking ahead, analysts say that attention will remain firmly on geopolitical developments and the upcoming US employment reports, which could significantly influence expectations for monetary policy. Despite these near-term headwinds, ongoing central bank purchases continue to provide a key source of long-term support for bullion.

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