The precious metals market is experiencing a wave of profit-taking following gold’s strong performance last year, when prices rose by approximately 66 per cent
The 24K gold price jumped nearly Dh20 per gram to Dh550.75, up from around Dh530.0 on Tuesday. Similarly, 22K, 21K, 18K and 14K gold also made strong gains on Wednesday morning, rising to Dh510.00, Dh489.00, Dh419.25 and Dh327.00 per gram, respectively.
Spot gold was trading at $4,567 per ounce, up 3.78 per cent at 9.10am UAE time. Silver price also bounced back, rising 4.6 per cent to $73.29 (Dh269) per ounce.
The precious metal rallied as the US dollar softened and concerns eased around further interest rate increases by the US Federal Reserve due to rising inflation.
Oil prices dropped more than five per cent on Wednesday on prospects of a Middle East ceasefire easing supply disruptions.
The New York Times reported on Tuesday that Washington sent Iran a 15-point plan to end the war in the Middle East. Israel’s Channel 12, quoting three sources, said the US was seeking a month-long ceasefire to discuss the plan.
Vijay Valecha, chief investment officer at Century Financial, said that as tensions persist, investors have begun taking profits in gold, prioritising portfolio preservation over increasing safe-haven exposure.
Source: www.khaleejtimes.com