Commodities
Gold Prices Plunge in Dubai Amid US Fiscal Concerns
Gold prices have taken a hit in Dubai this week, down by Dh25 from last Friday's close. The price of 24K gold has settled at Dh533, after reaching a three-month high near Dh4,700 last week.
The decline comes as investors await the US Federal Reserve's Chair's comments ahead of their September meeting. Globally, spot gold prices have fallen by 0.14% to $4,424.3 per ounce, while silver has gained 1.13% to $66.4 per ounce.
Analysts say the latest gold rally was driven by renewed concern about US fiscal sustainability and the dollar, following the Treasury's decision to expand buybacks of longer-dated government bonds. According to Ole Hansen, Head of Commodity Strategy at Saxo Bank, this signal is more important than the actual amount involved.