Gold Prices Dip in UAE Markets Amid Dollar Recovery

Gold prices in the UAE saw a decline of over Dh2 per gram at the market opening on Friday, with the 24K variant trading at Dh263 per gram compared to Dh265.25 at the previous close.

Similarly, according to data from the Dubai Jewelry Group, other variants, including 22K, 21K, and 18K, opened lower at Dh243.50, Dh235.75, and Dh202 per gram.

Factors Influencing Prices:

Gold prices surged by Dh5 per gram on Wednesday following the US Federal Reserve’s decision to keep interest rates unchanged, weakening the US dollar. However, the dollar rebounded on Friday, causing a downward pressure on the safe-haven metal.

Senior analyst Ipek Ozkardeskaya noted that gold retreated from its all-time high after the Fed decision. CEO Daniel Takieddine emphasized that central bank demand for gold may continue to support its performance despite short-term fluctuations.

Outlook for the Indian Market:

In India, a major consumer of gold for jewelry, the current rally in gold prices could face resistance due to slowing demand. Record-high prices have reportedly led to decreased demand for gold jewelry, with consumers and jewelers awaiting a potential price correction.

The ongoing wedding season in India has not spurred demand for gold jewelry due to the prevailing high prices. Consumers and jewelers are adopting a cautious approach, refraining from purchases in anticipation of a price correction.