UAE: Gold prices drop as concerns about global banking crisis ease

UAE: Gold prices drop as concerns about global banking crisis ease

The fall comes following an increased appetite for riskier assets and dampened demand for the safe-haven metal

Published: Wed 29 Mar 2023, 9:56 AM

Gold prices dropped on Wednesday as easing worries over a potential bigger fallout from the global banking crisis increased appetite for riskier assets and dampened demand for the safe-haven metal.

Spot gold was trading 0.33 per cent lower at $1,965.42 per ounce, as of 9.40 am UAE time.

In the UAE, the 24K gold was trading at Dh238.0 per gram at the opening of the market on Wednesday. Meanwhile, 22K, 21K and 18K opened at D220.5, Dh213.25 and Dh182.75 per gram, respectively.

"We've seen a natural retracement ... gold is pulling back after a failed 'bid' to break above $1,975," said Matt Simpson, a senior market analyst at City Index.

But some investors "still seem to be holding onto gold 'just in case' there's another skeleton or two lurking in the closet," he said and that gold might catch another bid heading into the European session.

Alex Kuptsikevich, a senior market analyst at the FxPro, said the yellow metal stormed $2,000 twice last week, but both attempts failed to consolidate above this significant round level. The double correction since the previous week clears