Dubai gold prices plunge over Dh26 per gram as investors book profit
Gold prices in Dubai suddenly plunged on Thursday evening, losing most of the gains achieved earlier in the day as investors booked profits after a strong rally.Globally, the precious metal plunged over four per cent to below $5,300 in the evening after it had surpassed $5,500 earlier in the day. At 9.30pm UAE time, it was trading at $5,344.3 per ounce.In Dubai, the 24K gold price fell Dh26.25 late on Thursday after jumping over Dh30 per gram earlier in the day.The Dubai Jewellery Group data showed 24K trading at Dh639.75 per gram, down from Dh666 at the opening of the markets on Thursday, while the 22K slipped below Dh600 to Dh592.5. Similarly, the other variants also lost most of their gains as 21K, 18K and 14K were trading at Dh568, Dh486.75 and Dh379.75 per gram, respectively.Stay up to date with the latest news. Follow KT on WhatsApp Channels.The recent gold rally was driven by geopolitical tensions globally, especially the US-Iran tension.Recently, a US aircraft carrier strike group arrived in the Middle East, bringing the number of US warships in the region to 10. These warships give a significant firepower at President Donald Trump's disposal if he decides to strike Iran.In addition, the drop in the dollar index is driving investors towards safe-haven assets like gold.Prior to the plunge in gold prices on Thursday evening, the yellow metal was poised for the best monthly gain in over 50 years.Vijay Valecha, chief investment officer, Century Financial, attributed the massive gains in precious metal prices to rising global uncertainty.“On a fundamental level, gold is rising due to growing geopolitical risks. Talks between the US and Iran failed to make progress on Iran’s nuclear programme, and US President Donald Trump has hinted at a possible intervention in the Middle East, which has increased uncertainty,” said Valecha.Technically, Valecha added, gold pushed toward $5,604 in early trading but has since pulled back to $5,549. On the upside, he sees $5,604 acts as key resistance, and a break above this level could open the way toward $5,700.On the downside, support for the yellow metal is seen at $5,438 on the hourly chart. A break below this level may push gold toward the next support at $5,317.Gold prices set for best monthly gain in 50 years after hitting record high'Time is running out': Trump urges Iran to make nuclear deal or risk 'far worse' attackTrump says Iran 'wants to make a deal' as US aircraft carrier in Middle East
Gold prices in Dubai suddenly plunged on Thursday evening, losing most of the gains achieved earlier in the day as investors booked profits after a strong rally.
Globally, the precious metal plunged over four per cent to below $5,300 in the evening after it had surpassed $5,500 earlier in the day. At 9.30pm UAE time, it was trading at $5,344.3 per ounce.
In Dubai, the 24K gold price fell Dh26.25 late on Thursday after jumping over Dh30 per gram earlier in the day.
The Dubai Jewellery Group data showed 24K trading at Dh639.75 per gram, down from Dh666 at the opening of the markets on Thursday, while the 22K slipped below Dh600 to Dh592.5. Similarly, the other variants also lost most of their gains as 21K, 18K and 14K were trading at Dh568, Dh486.75 and Dh379.75 per gram, respectively.
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
The recent gold rally was driven by geopolitical tensions globally, especially the US-Iran tension.
Recently, a US aircraft carrier strike group arrived in the Middle East, bringing the number of US warships in the region to 10. These warships give a significant firepower at President Donald Trump's disposal if he decides to strike Iran.
In addition, the drop in the dollar index is driving investors towards safe-haven assets like gold.
Prior to the plunge in gold prices on Thursday evening, the yellow metal was poised for the best monthly gain in over 50 years.
Vijay Valecha, chief investment officer, Century Financial, attributed the massive gains in precious metal prices to rising global uncertainty.
“On a fundamental level, gold is rising due to growing geopolitical risks. Talks between the US and Iran failed to make progress on Iran’s nuclear programme, and US President Donald Trump has hinted at a possible intervention in the Middle East, which has increased uncertainty,” said Valecha.
Technically, Valecha added, gold pushed toward $5,604 in early trading but has since pulled back to $5,549. On the upside, he sees $5,604 acts as key resistance, and a break above this level could open the way toward $5,700.
On the downside, support for the yellow metal is seen at $5,438 on the hourly chart. A break below this level may push gold toward the next support at $5,317.
What's Your Reaction?
