After the declaration of a ceasefire between Iran and Israel, gold prices in all categories in Dubai dipped, which reflects a change in market spirit, which is ease of geopolitical stress.
The price of 24k gold fell to DH403.5 per gram, not only affected by the ceasefire, but also affected by the ongoing pressure from the US Federal Reserve’s Hawkish trend on a strong US dollar and interest rates. A similar decline was seen in 22k, 21k and 18k variants.
Traditionally seen as a safe-disbursement property, gold increases during global uncertainty. But with the ceasefire in place and some geopolitical quiet return, investors are returning their focus to economic basic things – that is, the dollar strength and a possible interest rate hike.
As global markets react to changing headlines, Dubai’s gold sector is responsible, providing opportunities for both buyers and investors to look at the next step.
