Gold Price in UAE Drops Amid Stronger Dollar and Rising Treasury Yields
The gold price in Dubai and the UAE saw a slight dip on Friday morning due to a stronger US dollar. Spot gold was trading at $4,331 an ounce, down 0.8 per cent.
The 24K gold price dropped by nearly Dh38 per gram since August 25, with the metal trading at Dh522 and Dh483.5 per gram for 24K and 22K variants respectively. Other variants such as 21K, 18K, and 14K dipped to Dh463.5, Dh397.25, and Dh310 per gram.
Simon-Peter Massabni, head of business development at xs.com, attributed the decline in gold prices to a stronger US dollar and rising Treasury yields. He also noted that higher oil prices are creating a complex environment for gold, as geopolitical tensions normally support demand for safe-haven assets but persistently high oil prices could force major central banks to keep interest rates elevated.