Dubai gold prices went down on Wednesday. This gives shoppers in the UAE a better deal. Global gold markets are still feeling the pressure from a US dollar and higher US Treasury yields.
- The price of 24K gold in Dubai is now Dh537.75 per gram. This is down from Dh542.25 on Tuesday.
- 22K gold costs Dh498 per gram. It was Dh502 before.
- International spot gold prices also dropped. They are now $1,877.84 per ounce, which is a 0.67% decrease.
Market experts say gold prices are still under pressure. This is because rising US bond yields and a strong dollar make gold less attractive to investors. When Treasury returns go up, investors move their money from gold to assets that earn interest.
Vijay Valecha, Chief Investment Officer at Century Financial, says people are still worried about inflation. This keeps Treasury yields high. Limits gold’s growth. He also says ongoing conflicts and high oil prices are making people fear inflation.
Fadi Al Kurdi, Founder and CEO of FFA Kings, says gold might stay under pressure. This is if the US dollar keeps getting stronger and people expect interest rates to stay high.
With the decline in Dubai gold prices, prices in India went up on Wednesday. This is because of demand and changes in currency.
- Indian 24K gold costs ₹61,835 per gram now. It was ₹61,682 before.
- 22K gold costs ₹51,515 per gram now. It was ₹51,375 before.
Analysts say that local market conditions and currency changes can make Indian gold prices go up. This happens even when global gold prices go down.
Investors around the world are being cautious. They are watching how geopolitical tensions ease and how inflation and US Federal Reserve policy decisions affect the market. The hope for progress in US-Iran talks has reduced the demand for gold as an asset.
The expectation that the Federal Reserve might delay interest-rate cuts is supporting the dollar. This is also affecting gold prices. Experts think gold markets will be volatile in the coming weeks. This is because investors will be closely watching economic data and signals from central banks.
