Dubai: Gold prices fall in early trading
Market fluctuations highlight the impact of rising Middle East tensions on gold value
Dubai: Gold prices drop amid rising geopolitical tensions
Gold prices fell as markets opened in Dubai on Thursday, but trade continued higher on geopolitical tensions in the Middle East.
At 9am in the UAE, 24K gold was selling at Dh321.5 per gram, down half a dirham per gram from last night’s closing rate. Additionally, the starting prices for other kinds were Dh2297.75, Dh218.90, and Dh247 per gram, respectively.
At 9.10 a.m. UAE time on Thursday, spot gold was down 0.15 percent at $2,656.2 an ounce.
Rising geopolitical tensions in the Middle East and erratic economic data, according to XS.com senior market analyst Rania Gule, could hinder gold’s ability to maintain its recent high increase. The metal is presently trading around $2,650.40.
Gold rose more than 1 percent after developments in the Middle East picked up, prompting investors to seek it as a safe haven.
“However, the price quickly pulled back, reflecting the continued strength of the US labor market, which I believe limits the possibility of significant monetary easing by the Federal Reserve. These gold price fluctuations show how geopolitical worries and US economic expectations must coexist in a delicate equilibrium, with any economic information or political developments He stated that deviation is crucial in setting prices.
The US dollar is getting stronger, and it has been consolidating its gains over the last few days, which is contributing significantly to the pressure on gold.
“Potential escalation in Middle East conflict continues to cushion gold’s decline. Political tensions in this historically volatile region play an important role in maintaining a certain level of support for gold prices. Despite downward pressure from a strengthening dollar and strong US labor data, gold has strong support due to geopolitical fears. I believe these tensions are the fundamental driver for gold, and any diplomatic or military escalation could trigger fresh buying, limiting its losses,” Gule said.
Given these varying factors, investors are adopting a cautious approach to gold, viewing any price drop in the current scenario as a buying opportunity, he added.
