UAE - Gold prices in the UAE and globally plunged on Tuesday morning as the 24K variant of the yellow metal fell to Dh220 per gram range at the opening of the markets.

The Dubai Jewellery Group data showed 24K trading at Dh220.5 per gram on Tuesday at 9am as compared to last night’s close of Dh222.25 per gram. While 22K, 21K and 18K opened lower at Dh204.25, Dh197.5 and Dh169.25 per gram, respectively.

Spot gold was down 0.3 per cent to $1,820.17 per ounce as of 9.25 am UAE time.

The yellow metal was pressured as US Federal Reserve officials underscored the likelihood of interest rates staying high.

Alex Kuptsikevich, senior market analyst at FxPro, said gold's sell-off looked like a capitulation of the bulls, with a break of multi-month support.

“This could soon be followed by increased volatility with new lows. It is often at times like this that market inflexion points are formed,” he said

Kuptsikevich added that gold in the short term is oversold, creating the potential for a corrective bounce.

“It may well be that this acceleration in gold's decline is a sign that the fall is nearing its end, but it is still a case where it is better to be a little late to the rally than to buy in,” he added.

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