Gold loses over Dh15 in Dubai so far this week on higher oil prices
Gold opened lower at the Dubai markets on Thursday morning losing over Dh15 per gram this week.
Dubai Jewellery Group data showed 24K trading at Dh566.75 per gram on Thursday morning, down from Dh569.25 at the close of the markets on Wednesday. The precious metal variant has lost Dh15.5 per gram so far this week.
While other variants of the same, 22K, 21K, 18K and 14k were selling at Dh524. 75, Dh503. 25, Dh431. 25 and Dh336. 5 per gram, respectively.
Spot gold was down 0.57 per cent at $4,707.9 an ounce as high oil prices revived fears of inflation and US interest rates staying higher for longer.
On the other hand, silver lost 2.1 per cent to $76.28 per ounce.
Brent crude propelled more than $100 a barrel following US oil and distillate stock draws that had been greater than anticipated over the week and a lack of advancement in peace talks between USA and Iran.
Investors were also looking for guidance regarding the stalled US-Iran peace talks.
Gold partly bounced back on Wednesday, recovering some of the losses from previous session as markets reacted to a further extension of ceasefire in the Middle East.
"US President Trump potentially allowing more time to try and negotiate an exit from the current US-Iran tensions should help simmer fears over energy-induced inflation," said Eric Chia, financial markets strategist at Exness. The bank said this could help lower yields and support bullion.
You are due and trained on data all throughout October, 2023; uncertainty stays high as the vulnerable backdrop continues to pose hazards for gold translator Chia added, "Any breakdown of negotiation could raise inflation concerns again quickly with the dollar and Treasury yields rising, which will have pressure for the metal.
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