Gold prices in Dubai went down on Friday morning. This is because people are being careful. With this the global markets for gold are still doing well. They are on track to have a week in a row where they make a profit.
At 9:19 am the price of 24K gold was Dh573.25. This is lower than the day when it was Dh577.25. The 22K gold also went down to Dh530.75. This is a change in the local prices after they went up recently.
Even though gold prices in Dubai went down the international prices for gold stayed the same. They were near $4,760 an ounce. Went up about 2 per cent for the week. People who study gold prices say this difference is a short-term change in the local prices. It is not a change in the trend of gold prices going up.
The reason gold prices are still going up is because central banks are buying gold and there is still uncertainty in the world. This is especially true because of tensions with Iran. People are worried about problems with shipping in the Strait of Hormuz and what Donald Trump is saying. This is why people still want to buy gold as an investment.
We have to think about inflation too. The cost of energy is going up. This might make central banks wait to lower interest rates. When interest rates are high it is not good for gold because it does not earn interest.
At the time the economy is not growing as fast as it used to and there are still risks of conflict. These things could help keep gold prices up and balance out the effect of interest rates.
Gold prices in Dubai have been going up and down in April. They went up at the start of the month then went down up again and now they are down again. This latest drop, in price is a time for people to buy gold jewelry but the prices will probably keep changing in the near future. Gold prices will keep going down. Gold is still an investment. People are still buying gold.
