Dubai: Gold prices in the UAE have dropped a lot on Wednesday. They are now at their lowest in over a month. This is news for people who buy jewellery, especially with summer travel and the wedding season coming up.
- The price of 24-karat gold is now Dh503.50 per gram. It was Dh514.25 per gram the day before. 22-Karat gold is now Dh466.25 per gram. It was Dh476.25 per gram. Gold prices are now much lower than they were in mid-May. Then 24K gold was Dh567.25 per gram. 22K gold was Dh525.25 per gram.
People who buy jewellery now are saving a lot of money. Compared to May, buyers are saving Dh64 per gram on 24K gold. They are saving Dh59 per gram on 22K gold. This means people can save a lot when they buy pieces of jewellery. With tensions rising in the Middle East, people are not buying gold as a safe investment. Instead, they are worried about inflation in the US economy, higher bond yields and a strong US dollar. These things usually make gold prices go down.
Gold prices recently fell below a level that investors watch. This made some investors sell their gold, which made the price drop further. The situation now is different from crises. Usually, when there is uncertainty, gold prices go up. Now, high oil prices are causing inflation worries. This might make central banks keep interest rates high for longer. Since gold does not earn interest, this makes it less attractive.
Analysts think traders are now watching the $4,100–$4,075 per ounce range. This range might support prices. At the time, things like central banks buying gold, debt worries, and global economic uncertainty still support gold prices. Now Everyone is waiting for the US inflation data and the next Federal Reserve meeting. These factors might decide whether gold prices keep dropping or go up in the coming weeks.
