Gold prices in Dubai saw a small increase on Thursday morning following a significant drop of nearly Dh10 per gram since Monday night. This decline was linked to global rates falling as the US dollar strengthened after Donald Trump’s election victory.
The 24K gold variant opened Dh0.25 higher at Dh322.75 per gram in Dubai on Thursday after experiencing a drop of nearly Dh7 per gram on Wednesday. This marks a decline of nearly Dh10 from this week’s high of Dh332.5 per gram, which was noted at the close of the markets on Monday.
Among other variants, 22K, 21K, and 18K gold were priced at Dh298.75, Dh289.25, and Dh248.0 per gram, respectively.
On the global front, gold was trading at $2,657.52 per ounce, down 0.38% as of 9:10 AM UAE time, reaching its lowest point in over three weeks on Thursday.
Samer Hasn, a senior market analyst at XS.com, noted that gold had significantly retreated, falling below $2,700 per ounce on Wednesday during spot trading, which erased the gains made in November.
Bas Kooijman, CEO and asset manager of DHF Capital, mentioned that as the US dollar continues to rise, gold could face potential declines in the short term. He stated, “Donald Trump’s victory in the presidential race has strengthened the dollar. Trump celebrated with his running mate, Senator JD Vance, and his family, while also receiving broad support. Although Republicans gained a Senate majority, control of the House remains uncertain.”
He added, “The uncertainty surrounding trade policies and geopolitical issues under Trump raises concerns about disruptions in European trade. As a result, the euro’s outlook may stay weak, with traders wary of the potential negative effects on the region’s economic future under new US policies.”
