A salesman at a gold shop in the Gold Souk in Deira Image Credit: Gulf News archives

Dubai: Despite falling to its lowest level in weeks, gold might just continue to stick to its ground and move higher over the next few days, an industry source said.

Gold prices held their levels on Tuesday morning, after posting the biggest decline since March on the initial results of the French elections.

As of 9.30am, 24K was retailing at Dh155.50 per gram in Dubai, slightly up from Monday’s afternoon trade and about Dh15 higher than in January 2017.

The bullion had dropped to its lowest level on Sunday after the victory of centrist presidential candidate Emmanuel Macron encouraged investors to put their money in riskier assets.

“[That was] the biggest decline in the last two weeks. Investors moved away from safe haven assets because of the French voting. They are now confident to invest in more riskier assets,” said Karim Merchant, group CEO and managing director of Pure Gold Jewellers.

For those who are awaiting further declines, however, it’s important to note that prices remained volatile and current trends suggest there is more room to move on the upside.

Factors that could play in favour of gold include the polls in Germany and United Kingdom, as well as upcoming policies by US president Donald Trump.

“Gold will continue to remain volatile with several global factors like US policies and upcoming German and UK  elections influencing the investment strategies of institutional investors,” Merchant told Gulf News.

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