Gold prices ease in Dubai after rising nearly Dh8 in 24 hours
Gold prices slightly eased in Dubai on Wednesday morning after jumping nearly Dh8 per gram in the past 24 hours.
The 24K gold price was trading at Dh581.5 per gram at the market open on Wednesday, up from Dh573.5 per gram on Tuesday morning.
Among other variants of the precious metal, 22K, 21K, 18K and 14K were trading at Dh535.5, Dh516.25, Dh442.5 and Dh345.25 per gram, respectively.
Spot gold was steady at $4,825 per ounce, while silver was up 9.56 per cent at $79.8 (Dh293.3) per ounce on Wednesday morning.
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The precious metal gained on Tuesday on the prospect of another round of talks between the US and Iran in the coming days in Islamabad, Pakistan.
Frank Walbaum, market analyst at Naga, said gold rose on Tuesday, recovering from the previous session’s losses as a slide in the dollar and Treasury yields provided support.
“Positive diplomatic signals between the United States and Iran helped fuel hopes of a resolution to disruptions in the Strait of Hormuz, which weighed on oil prices, reduced inflationary concerns and softened monetary policy expectations.
“Investment flows also showed some signs of stabilisation. After a period of sustained outflows during the height of tensions in the Middle East, gold-backed ETFs have recorded inflows in recent weeks, highlighting reduced pressure on the asset. Meanwhile, persistent tensions between Russia and Ukraine continue to underpin safe-haven demand. Central bank purchases also continue to offer support,” said Walbaum.
Looking ahead, he said gold’s direction will depend on the evolution of geopolitical negotiations. Upcoming economic data, including inflation releases in the US, could be pivotal in shaping the outlook for monetary policy and influencing bullion in the near term.
