UAE: Gold prices drop half a dirham in early trade in Dubai

UAE: Gold prices drop half a dirham in early trade in Dubai

The strong dollar continues weighing on gold appetite, say analysts

Published: Tue 30 May 2023, 10:02 AM

Gold prices slipped in the UAE on Tuesday morning after precious metal prices fell globally, weighed down by the prospects of the US reaching the debt ceiling deal and strengthening of the dollar.

According to Dubai Jewellery Group data, the 24K was trading at Dh234.75 per gram at the opening of the markets on Tuesday morning, down half a dirham from last night’s close. Similarly, 22K, 21K and 18K variants of the yellow metal were trading at Dh217.5, Dh210.5 and Dh180.5 per gram, respectively.

Globally, the spot gold price was down at $1,935.8 per ounce, down by 0.31 per cent, at 9.37 am UAE time.

Ipek Ozkardeskaya, senior analyst, Swissquote Bank, said the strong dollar continues weighing on gold appetite.

US President Joe Biden said on Monday he feels good about prospects for passage by Congress of the debt ceiling deal that he reached with House of Representatives Speaker Kevin McCarthy.

High volatility events such as the US regional banking crisis, and whether or not an agreement would be reached on raising the US debt ceiling are now passing, "reducing the market's interest in gold as investors seek alpha," Michael