Gold Market Price Sees Decline in Prices After Recent Dh2 per Gram Increase

Arab Times News – May 7, 2024: Gold Market Price in the UAE saw a modest decline on Tuesday morning, reversing some of the gains made in the previous session. This dip follows the release of the US April employment report, which influenced market sentiment.

A Brief Respite After Monday’s Surge

After surging by more than Dh2 per gram on Monday, gold prices eased slightly on Tuesday. The 24K variant opened at Dh281.25 per gram, down from Dh281.75 at Monday’s close. Similarly, other variants, including 22K, 21K, and 18K, traded lower at Dh260.5, Dh252.0, and Dh216.0 per gram, respectively.

Market Sentiment Shifts in Gold Market Price

Investor optimism regarding potential interest rate cuts by the US Federal Reserve, coupled with geopolitical tensions in the Middle East, had initially bolstered gold prices. However, the release of the US April employment report tempered this sentiment, leading to a slight retreat in gold prices.

Expert Analysis

According to Mohamed Hashad, chief market strategist at Noor Capital, the positive sentiment on Wall Street, as evidenced by a downturn in US Treasury bond yields, contributed to the decline in gold prices. Hashad noted that the relationship between bond yields and gold prices played a significant role in the market dynamics.

“The release of the US April employment report prompted a shift in investor sentiment, impacting the perceived safe-haven status of gold,” explained Hashad. “Despite earlier gains, gold prices experienced a modest decline as market participants recalibrated their positions in response to evolving economic data.”

As market volatility persists amid geopolitical uncertainties and economic developments, investors are closely monitoring key indicators for insights into future gold price movements. The interplay between macroeconomic factors and geopolitical tensions will continue to influence gold prices in the days ahead.

With expectations of further market fluctuations, analysts advise investors to remain vigilant and adapt their strategies accordingly. As gold remains a key asset in diversified investment portfolios, its performance remains subject to a range of internal and external factors, highlighting the importance of staying informed and proactive in navigating market dynamics.

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