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Gold prices in Dubai fall by more than Dh1 per gram

Today may be a good time to stock up on gold jewellery, as retail rates have just dropped

The Gold Souk at Dubai Mall
Image Credit: Zarina Fernandes/Gulf News
The Gold Souk at Dubai Mall.

Dubai: Jewellery gold rates in Dubai plunged on Tuesday, providing buyers a momentary relief from soaring prices.

The price of 24K stood at Dh154.50 per gram as of 9.29am, down by Dh1.25 per gram from Monday. At the same time, spot gold dropped 0.5 per cent at $1,275.79 an ounce, as investors turned to riskier assets on easing tensions between the United States and North Korea, according to Reuters.

The precious metal had earlier enjoyed stronger safe-haven demand after US President Donald Trump threatened North Korea with “fire and fury.” The bullion also benefited from the easing US dollar and weaker-than-expected inflation data.

Gold’s recent strong performance has led many of the analysts to expect that the yellow metal will post another rally and touch the $1,300 level.

“Safe-haven demand for gold and silver continued, despite the set-back that was seen following the stronger-than-expected July jobs report,” Ole Hansen of Saxo Bank said on Tuesday, prior to the decline in gold prices.

“In the three weeks ahead of Trump’s "fire and fury" statement, the net-long in gold had risen by 110,000 lots with 71,000 lots of these being short-covering.” 

“The gold net-long at 138,566 lots was half of the one-year maximum while for silver it was even lower at just 28 per cent.”

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