Gold prices in the United Arab Emirates (UAE) continued to decline, dropping by more than one dirham to reach a one-month low and trading below Dh230 per gram at the market's opening on Wednesday.
According to data from the Dubai Jewellery Group, the 24-karat gold variant started trading at Dh229.75 per gram on Wednesday, compared to its previous night's closing price of Dh231.0 per gram. Over the past 24 hours, the 24k variant has depreciated by Dh2.25 in value.
Similarly, the 22k, 21k, and 18k variations of gold also opened at lower prices, standing at Dh212.75, Dh206.0, and Dh176.5 per gram, respectively, at 9am local time.
On the global scale, spot gold exhibited subdued performance at $1,896.54 per ounce by 9:15am UAE time. This comes after breaching the critical $1,900 threshold and reaching its lowest level since August 23 on the previous day.
Vijay Valecha, the chief investment officer at Century Financial, attributed gold's continued decline to the rise in long-term US Treasury yields and the strengthening of the US dollar. He noted that, from a near-term technical perspective, gold appears to be trading without a clear directional trend.
Meanwhile, the local gold price premium in China has surged to unprecedented levels, reaching $121 per ounce on September 14. This premium, typically higher than international prices, is a result of China's heavy reliance on gold imports, making it a scarcer commodity due to import controls and limited domestic production.
