At 9 AM UAE time, the price of 24K gold dropped to Dh321.0 per gram, down from Dh322.5 on Monday’s closing. Other gold variants also saw declines, with 22K priced at Dh297.25, 21K at Dh287.75, and 18K at Dh246.75 per gram.
Globally, spot gold prices remained stable at $2,651.11 per ounce.
Chris Weston, Head of Research at Pepperstone, noted that last week gold traders were disappointed when prices fell after touching the November 25 highs of $2,726. He explained that as trading began this week, the market showed calmer conditions. Traders are holding back from making significant moves until the US Treasury market shows a clear direction.
“With US 10-year real rates above 2% and nominal 10-year Treasury yields rising by 24 basis points last week, gold prices will likely follow movements in Treasury yields,” Weston said. If US Treasury yields continue rising and break the 4.50% level, gold prices could decline further towards the $2,613 range and possibly hit the 100-day moving average of $2,600, which has supported the gold bull market throughout the year.
Weston added that gold’s connection with the US dollar and Treasuries has been inconsistent in 2024. However, when US Treasury yields rise sharply, gold traders are often pushed to reduce their long positions.
