Dubai gold price dips Dh3.25 on global market shifts
Trump’s trade optimism reduces demand for safe-haven assets
DUBAI: Gold prices took a tumble on Wednesday following signs of easing tensions between the US and China, reducing demand for the precious metal as a safe-haven asset.
Investors are also eyeing US inflation data for cues on the Federal Reserve’s next interest rate move.
In Dubai, 24-carat gold dropped by Dh3.25 to stand at Dh392.00 per gram. Similarly, 22-carat gold also slid Dh3.25 to Dh362.75. The 21-carat variety saw a Dh2.75 dip, now priced at Dh348.00, while 18-carat gold fell Dh2.50 to Dh298.25.
Global market shifts
Spot gold declined 0.4 per cent, trading at $3,234.32 an ounce at 02:31 GMT (currently above Dh3,229). US gold futures slipped 0.3 per cent, landing at $3,237.00.
A White House executive order confirmed that the US will reduce the “de minimis” tariff for low-value Chinese imports to 30 per cent. Trump earlier stated he does not foresee tariffs returning to 145 percent post the 90-day truce, hinting at potential trade agreements.
In the US, the consumer price index rose by 0.2 percent in April, slightly below market expectations. Traders await Thursday’s Producer Price Index release, which may influence future Fed decisions. The market currently anticipates 53 basis points in rate cuts this year, likely starting in September.
Trump reiterated his call for lower interest rates, citing falling costs for fuel, groceries, and other essentials.
Meanwhile, spot silver declined 0.8 per cent to $32.63 an ounce, palladium dropped 0.7 per cent to $950.18, and platinum stayed flat at $987.85.