UAE: Gold prices fall in Dubai in early trading – News
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Gold prices fell in the United Arab Emirates during the opening of markets on Wednesday morning.
Data from Dubai Jewelery Group showed that 24K was trading 75 fils or 0.75 dirhams at 246.0 dirhams per gram, while 22K, 21K and 18K also opened lower at 227.75 dirhams, 220.5 dirhams and 189. 0 dirhams per gram, respectively.
Spot gold was down 0.10 per cent at $2,029.02 an ounce at 9:20 am UAE time.
Gold prices regained some of the lost ground during the early hours of the Tuesday morning session.
“Concerns about the possibility of the US Federal Reserve maintaining a restrictive stance for an extended period could put selling pressure on gold in the near term. Traders are expecting fresh momentum from the US Consumer Price Index (CPI) on Thursday,” said Vijay Valecha, chief investment officer at Century Financial.
Diego Colman, contributing strategist at dailyFX, said the yellow metal had a strong run in late 2023 but stumbled at the start of the new year, with traders increasingly reluctant to take additional bullish positions on concerns that the aggressive easing of the Federal Reserve will not materialize.
“While the U.S. central bank took a more cautious stance at its December meeting and signaled it would reduce borrowing costs in 2024, the market may have gotten ahead of itself by pricing in too many cuts for an economy that continues to show strength and is experiencing above-target inflation,” Colman said.
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