DUBAI — Gold prices in Dubai extended their decline on Thursday, tracking a global sell-off that pushed bullion below the $4,000-an-ounce mark for the first time since November.
The price of 24-karat gold fell to Dh485.75 per gram on Thursday morning, down from Dh486.50 a day earlier, while 22-karat gold dropped to Dh449.75 per gram from Dh450.50 on Wednesday.
The latest decline means 24-karat gold has shed Dh56.75 per gram since reaching a monthly high of Dh542.50 on June 2. Over the same period, 22-karat gold has fallen by Dh52.50 per gram from its peak of Dh502.25.
For consumers purchasing 10 grams of 24-karat gold, the price drop represents a saving of Dh567.50 compared to the beginning of the month, excluding making charges and value-added tax.
Dubai’s gold market had started June on a strong note, with 24-karat gold opening at Dh539.75 per gram before climbing to a monthly high of Dh542.50 on June 2. Prices remained above Dh520 during the first week of the month before beginning a sustained downward trend.
After briefly recovering to Dh522.25 on June 16, gold prices resumed their decline, falling steadily throughout the second half of June to reach current levels.
The weakness in Dubai’s gold market mirrors developments in international markets, where spot gold fell as much as 0.9 percent to around $3,964 per ounce on Thursday after losing nearly 3 percent in the previous trading session.
Analysts attribute the decline to a stronger US dollar and growing expectations that interest rates could remain elevated for longer, reducing the appeal of non-yielding assets such as gold.
According to market analysts, investor sentiment has turned cautious as technical indicators point to further downside risks. A stronger dollar has also increased the cost of gold for buyers using other currencies, weighing on demand.
Despite the sharp correction, many traders remain optimistic that prices could recover. Data from trading platform Pepperstone showed that a majority of investors continue to hold long positions in gold, anticipating a rebound above the $4,000 level.
However, analysts warn that if gold remains below recent support levels, prices could fall further towards $3,900 per ounce in the near term, potentially putting additional pressure on retail gold rates across the Gulf region, including Dubai.
Source: Gulf News
