Dubai: Gold prices in Dubai recorded a significant decline at the close of trading on Monday, June 1, offering relief to buyers after weeks of elevated rates.
According to the Dubai Jewellery Group, the price of 24-carat gold fell by Dh5.75 per gram to Dh541.75, down from Dh547.50 on Sunday, May 31.
Other gold categories also registered losses. The price of 22-carat gold dropped to Dh501.75 per gram from Dh507.00, while 21-carat gold fell to Dh481.00 from Dh486.00. The rate for 18-carat gold declined to Dh412.25 per gram from Dh416.75, and 14-carat gold slipped to Dh321.50 from Dh325.00.
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The decline in local gold rates followed weakness in the international bullion market, where prices edged lower amid shifting investor sentiment.
According to Reuters, spot gold fell 0.4 per cent to USD 4,518.09 per ounce after reaching a two-week high in the previous session. US gold futures for August delivery also retreated, dropping 1 per cent to USD 4,548.90 per ounce.
Market analysts attributed the decline to a stronger US dollar and rising crude oil prices, which reduced demand for gold as a safe-haven asset.
“Oil’s uptick in price, combined with the still-elusive US-Iran deal, is just enough to keep gold off balance at the start of the week,” Tim Waterer, Chief Market Analyst at KCM Trade, was quoted as saying by Reuters.
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Investors are closely monitoring developments surrounding a proposed agreement to extend the ceasefire between the United States and Iran, with uncertainty over the outcome continuing to influence global financial markets.
The latest fall in gold prices is likely to be welcomed by jewellery buyers and investors in the UAE, where demand typically strengthens when rates ease.
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