Gold prices plunged more than Dh11 per gram in Dubai on Monday as the precious metal fell below $4,500 an ounce during the late session.
The 24K gold price was trading at Dh536.25 per gram on Monday evening, down Dh11.25 from Dh547.5 per gram at the close of markets on Friday.
Similarly, the 22K gold price fell below Dh500, trading at Dh496.5 per gram. Other variants also declined – 21K, 18K, and 14K gold prices fell to Dh476.0, Dh408.0, and Dh318.25 per gram, respectively.
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Spot gold was trading at $4,467 per ounce, down 1.23 per cent. It fell nearly two per cent earlier in the day to $4,451 an ounce as escalating tensions in the Middle East heightened inflation concerns and reinforced expectations that central banks may keep monetary policy tighter for longer.
Vijay Valecha, chief investment officer at Century Financial, said gold faced renewed selling pressure on Monday.
“Bullion remains under pressure as a stronger US dollar and persistent higher-for-longer interest rate expectations continue to weigh on investor sentiment. Gold is still trending downward as markets closely monitor ongoing US-Iran developments and Middle East geopolitical risks, with uncertainty surrounding ceasefire discussions and regional security keeping energy markets volatile,” he said.
Valecha added that while rising oil prices have fuelled concerns over renewed inflationary pressures – which historically support gold — they have also reinforced expectations that the US Federal Reserve could maintain a restrictive policy stance for longer, creating a bearish backdrop for non-yielding assets like gold.
