UAE 24-Karat Gold Falls to Dh522.75 From Dh526.25.
Dubai: A US Federal Reserve rate hike and easing oil prices are giving traders fresh signals as they position themselves at the end of a volatile week. With gold having delivered a strong performance this year, the precious metal remains firmly in focus among investors.
For buyers in Dubai this Friday, 24-karat gold is priced at Dh522.75 per gram, down from Dh526.25 a day earlier. Meanwhile, 22-karat gold is trading at Dh484.00 per gram, marking a decline of Dh3 from the previous day.
In international markets, bullion is trading slightly higher at around $4,365.20, holding firmly above the $4,350 level, which traders have viewed as an important support point.
US Treasury yields declined across maturities, reversing the spike that followed the Federal Reserve’s unanimous quarter-point rate increase on Wednesday. Lower yields helped ease some of the pressure on gold, which typically becomes less attractive when yields rise because the precious metal does not generate interest income.
Oil falls for third straight day
Oil prices declined for a third consecutive day as concerns over Middle East supply disruptions showed signs of easing, reducing some of the inflationary pressure associated with higher energy costs.
Saudi Arabia has taken steps to restore a key pipeline to around half of its capacity within days, while some tankers have continued to transit through the Strait of Hormuz despite tensions in the region.
Gold’s recovery on Thursday lifted prices back above the 100-day moving average, a widely watched technical indicator used to assess price momentum.
Despite the rebound, the precious metal remains nearly 20 per cent below the level seen before the Iran war began in late February, underscoring the sharp swings in bullion prices in recent months.
