Gold Prices In UAE Fall Dh10 Per Gram As Market Adjusts

Gold prices in the UAE continued their decline on Tuesday, dropping over Dh10 per gram within the last 24 hours. The Dubai Jewellery Group reported that the 24K gold variant fell by Dh4 per gram on Monday morning, trading at Dh279.25 per gram on Tuesday compared to Dh283.25 per gram at Monday's market close. This variant alone lost Dh6.25 per gram on Monday, totalling a drop of Dh10.25 per gram since Monday morning.

Other gold variants also saw declines, with 22K opening at Dh258.5, 21K at Dh250.25, and 18K at Dh214.5 per gram.

Spot Gold and Market Trends

At 9:05 am UAE time on Tuesday, spot gold was down by 1.19%, trading at $2,305.84 per ounce. Investors were seen booking profits following a strong rally over recent months and due to easing concerns about potential escalation in the Middle East.

Vijay Valecha, Chief Investment Officer at Century Financial, noted that geopolitical tensions in the Middle East had lessened, causing the yellow metal to backtrack.

"The bullion has enjoyed a 5-week rally – which marks its longest winning streak in over a year. Haven's demand for the precious metal moderated after the Iranian regime downplayed Israel's counterattack and did not signal retribution," he said.

Economic Calendar Focus

Attention has now shifted towards economic indicators, particularly with the US Federal Reserve's preferred inflation gauge, the PCE Price Index report, expected this Friday.

"Analysts expect a slight uptick in March's reading to 2.6% from February's growth rate of 2.5%. This would typically be a bearish signal for gold, although the precious metal is up nearly 15% as of Monday this year despite the prospect of a delayed Fed pivot to rate cuts," Valecha added.

Despite a stronger dollar and higher treasury yields, gold prices have risen due to haven demand, central bank purchases, and revived demand from Asia.

The recent trends indicate that while geopolitical factors can significantly influence gold prices, economic data releases also play a crucial role in shaping market expectations and investor behaviour.