Dubai gold prices fall again after recent peak
The world’s most precious metal has today recorded a loss of Dh2.5 days after Monday.
In the second half of the day markets opened in Dubai at the prices for gold which were largely in tune with the global diminution in metal ahead of the interest cuts by the US Federal Reserve which is due later today.
At 9 AM the 24K variant of the yellow metal was priced at Dh311 per gram down from the previous nights closing by Dh0.75. The other variants namely 22K, 21K and 18K were lower than that at opening with prices of Dh288, Dh278.75, and Dh239.0 respectively.
After yellow metal hit an all-time high on 24K hitting dramatic Dh313.5 per gram with 24K bullion on Monday, today is the second consecutive day that the yellow metal opened at lower rates for the second consecutive day. It has lost Dh2.5 after hitting that peak on Monday.
In the international markets gold was being sold at $2,576.49 per ounce, down by 0.21% at 9.10 AM.
The dollar’s decline and the possible zoom out of US monetary policy on Monday point towards that bull-only situation when the demand for gold entered a bull only mode, said Marc Pussard , head of risk , APM Capital.
Chris Weston, the head of research at Pepperstone has avowed that with the price sustaining at the all-time high, those waiting for a spike of a 2600 dollar price break needs to be inspired to buy gold anew, and it is not really clear how that should be done.
“On one hand, I could argue that a 50 bp cut married with a more concerned message could keep 2-year Treasury yields headed lower, which in turn would support gold – however, as we’ve seen in recent episodes, if equity tanks, even if the triggers are fundamentally supportive of gold price appreciation, then the yellow metal can get caught up in the broad de-risking and the liquidation seen in risky assets.”
On the flip side, I don’t see a 25bp cut as being detrimental for the gold market either – this call is, however, dependent on the Fed showing that they do have the guts to take more pronounced action in Nov/Dec if it warrants, and we do see equities moving higher – where appreciated risk is absorbed into the US dollar,” told Weston.
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