Now is the time to purchase. UAE gold prices drop by around $0.82 per gramme
Following the US Federal Reserve's decision to stop raising interest rates, gold prices fell by over three dirhams per gramme in the UAE on Thursday morning.
The 24K was trading at Dh234.25 per gramme at the start of the markets, down Dh2.75 per gramme from last night's finish of Dh237.0 per gramme, according to statistics from the Dubai Jewellery Group. Also starting lower at Dh216.75, Dh209.75, and Dh180.0 per gramme, respectively, were 22K, 21K, and 18K.
At 9.18 AM UAE time, spot gold was trading in the red at $1,931.98 per ounce.
At the conclusion of its meeting on Wednesday, the Fed decided not to increase interest rates. Analysts anticipate additional rate increases later this year, taking the range from 5.0 to 5.25 percent to 5.50 to 5.75 percent by the end of 2023.
The decrease in price will increase demand in the UAE for the precious metal and its jewellery.
A break below $1,930, according to Dubai-based Century Financial, can trigger adjustments towards $1,912 and then $1,890.
The UAE's market for precious metals, such as gold, jewellery, gold bars, and silver, was valued at Dh8.52 billion in 2020, and according to Bas Kooijman, CEO and Asset Manager of DHF Capital, it is anticipated to grow to Dh13.21 billion by the end of the decade at a compound annual growth rate of 3.66 percent through 2030.