Gold prices drop further in Dubai, losing more than Dh48 per gram in a month
Dubai gold prices remained on the decline in the morning on Monday, facing the headwinds of soaring oil prices and US interest rate hikes amid intensifying Middle East conflict.
The price of 24K gold dropped to Dh519. 7665, at the open of the market on Monday and down from Dh521 per gram 75 over the weekend.
24K gold price decreased Dh48. 07 per gram in the last 30 days and Dh27. 75 per gram in June so far.
The other versions of the precious metal, 22K, 21K, 18K and 14K gold prices eased to Dh481. 25, Dh461. 25, Dh395. 5, and Dh308. 5 per gram, respectively.
In overseas markets, gold was pegged 0.45 per cent lower to $4,310 an ounce.
Over the weekend, Israel and Iran launched strikes against one another, including hitting Iranian petrochemical facilities.
The factor is geopolitical developments are clashing most complicatedly with monetary and economic factors in decades, making it put on its face putting type of additionally complicated to peer if the yellow steel ultimately turns bullish.
The precious metal is "stuck in the mud" at best among other risk asset classes despite rising tensions in the Middle East and major new concerns regarding global supply chains, energy markets and geopolitical stability. And that brings me to the obvious question: What will be the main factor determining gold's next move – geopolitical risks or the continued relative strength of the US dollar along with aggressive Federal Reserve monetary policy? he said.
Massabni said that a strictly fundamental review of the marketplace leads to a conclusion that gold is actually running into more powerful headwinds than supporting elements investors have usually rested their hats on in uncertain and geopolitical troubled times.
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