UAE: Gold prices dip after gains in the previous session

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Gold prices dipped in the UAE on Tuesday morning by half a dirham per gram after rising more than Dh2 per gram on Monday.

The 24K variant of the yellow opened at Dh281.25 per gram at the opening of the markets on Tuesday as against Dh281.75 at the close of the markets on Monday. Among the other variants of the yellow metal, 22K, 21K and 18K were trading lower at Dh260.5, Dh252.0 and Dh216.0 per gram, respectively.

The yellow metal gained Dh2.25 per gram on Monday. Spot gold was trading at $2,322.16 per ounce, down 0.18 per cent, at 9.30 am UAE time.

The yellow metal was trading higher earlier in the day as investors bet that the US Federal Reserve will cut interest rates later this year and tension in the Middle East region.

Mohamed Hashad, chief market strategist, Noor Capital, said yellow metal prices retraced from earlier gains following the release of the US April employment report.

“The optimistic sentiment prevailing on Wall Street exerted pressure on gold’s status as a safe haven. Notably, US Treasury bond yields exhibited a downtrend, with benchmark 10-year bonds receding by seven basis points. Concurrently, US annual bond yields, which share an inverse relationship with gold prices, also experienced a decline of six and a half points, sliding from 2.219 per cent to 2.146 per cent,” said Hashad.