Copyright gulfnews
Dubai: Dubai’s gold market opened lower on Thursday, tracking a brief recovery in global bullion after a sharp selloff..Sign up for our daily business newsletter, Cheques & Balances..Retail prices for 24-karat gold slipped to Dh472.50 per gram at 7:30 am, down from Dh476.25 on Wednesday evening. That is a drop of about 0.8%. The popular 22-karat category fell to Dh437.50 from Dh441.00, also about 0.8% lower.Globally, gold staged a modest bounce after heavy losses, rising as much as 0.9% to trade near $3,967 an ounce. The move comes after bullion fell almost 5% over the previous four sessions as traders reassessed the pace and scale of interest-rate cuts in the US(Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)Federal Reserve Chair Jerome Powell downplayed the likelihood of a December policy reduction after the widely expected quarter-point cut on Wednesday. The meeting marked the third consecutive gathering with dissenting votes, a sequence not seen since 2019 and a reminder of the policy divide within the central bank.The split view has complicated the picture for investors already dealing with a lack of fresh economic figures after a US government shutdown earlier in October. Higher interest rates generally weigh on gold because the metal does not generate yield.The latest retreat follows a record run in which gold surged beyond $4,380 an ounce last week. Momentum indicators had signalled stretched conditions, and improving sentiment around US-China trade relations is removing some of the urgency behind haven buying..UAE gold prices drop Dh15 as global rates fall 3% for second day in a row.Why Dubai gold remains cheaper than India and what buyers should know before they shop.US-China tariff talks Presidents Donald Trump and Xi Jinping are set to finalise a detente when they meet in South Korea on Thursday. Initial indications point to a deal that could roll back recent tariffs, fees and export restrictions and put the trade confrontation on hold.Despite the pullback, gold remains up about 50% this year. Central-bank demand and investor positioning for what has been described as a debasement trade have provided strong support, with buyers favouring bullion over sovereign debt and major currencies in a year of large fiscal deficits.Exchange-traded funds linked to gold have been a key channel for institutional and retail interest, although this week’s outflows show some profit-taking and rebalancing as the market cools from record highs.
