Gold in UAE: Do I buy or hold? Prices seen dropping as inflation runs hot globally

Gold in UAE: Do I buy or hold? Prices seen dropping as inflation runs hot globally

Gold prices retreated on Monday from a one-month high scaled earlier in the session, as red-hot US inflation data tempered demand for safe-haven bullion. In the UAE, the cost of 24-karat gold was at Dh225.5 per gram on Monday. Meanwhile, the price of 22-karat gold fell to Dh211.75 per gram, 21-karat to Dh202.25 and 18-karat to Dh173.25 in the UAE. Check Globally, spot price of gold was down 0.6 per cent at $1,859.90 per ounce. US gold futures, indicative of near-term prices, also eased 0.6 per cent to $1,864.40. Gold, which is often seen as a safe-haven asset in times of economic crises, hit its highest since May 9 earlier in the session at $1,877.05 per ounce. Analysts have been evaluating how gold could be heading for another rally, with warnings over a global economic slowdown paving the way for a fresh push toward $2,000 an ounce. However, that's when soaring inflation data pushed the cost of the yellow metal lower. Will this downward price trend continue in the weeks to come? Analysts opine that it will. Moreover, benchmark US 10-year government bond yields also rose to their highest since May 9, weighing on demand for zero-yield gold. "The fact