Dubai: Gold prices drop; 24K variant sells at Dh361.75
Global gold prices on Tuesday rose from a near four week low hit in the previous session as increasing anxiety over the trade spat between the USA and its top trading partners cooled demand for risk, pushing investors back into safe-haven assets.
In UAE, 24k fell to Dh3 and opened at Dh361.75 per gram against Dh364.75 when markets closed on Monday. The 22K variant was selling at Dh335 per gram. Among the other variants, 21K and 18K opened at Dh321 and Dh275.25 per gram, respectively.
President Donald Trump escalated tariff threats against China on Monday, and the European Union laid out plans for counter duties, fuelling anxieties that an extended trade dispute could plunge the world economy into recession.
Reliance Securities senior analyst Jigar Trivedi said, "Worsening of the trade war can lead to global recession, and that is where the safe-haven demand is coming from.
The fundamental negative undertone of note is this"gold, which is still relatively firm even after falling out of recent sessions, must remain on the upward trend"
Trump, who has been discussing a possible pause on tariffs to ease talks with trading partners, said he was not contemplating a suspension of the duties but would talk with China, Japan and other nations about them.
In physical markets, spot gold climbed 1% to $3,013.42 an ounce. On Monday, bullion settled at its lowest level since March 13. US gold futures rose 1.3% to $3,010.70.
Gold, which many investors see as a haven in times of political and financial turmoil, reached record bacon at $3,167.57 an ounce on the 3 April.
The minutes are the central bank's most recent policy meeting, which will be released Wednesday, and markets will be watching closely.
Traders are also looking out for US Consumer Price Index data due for Thursday, with the Producer Price Index on Friday to provide US interest rate clues, against the backdrop of more and more fears of a global trade war and recession spreading.
Futures now priced almost 93 basis points of US Fed interest rate cuts by December. For other metals, spot silver lowered 0.1% to $30.09 an ounce, platinum rose 1.3% to $925.35 and palladium fell 0.3% to $915.80.
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