Gold prices in Dubai dropped on Tuesday morning to below Dh500, with the precious metal losing Dh30.5 in one month.
The 24K variant was trading at Dh497 per gram, down from Dh500.50 at the close of the markets on Monday. The other variants, 22K, 21K, 18K, and 14K, were trading lower at Dh460.25, Dh441.25, Dh378.25, and Dh295 per gram, respectively.
Globally, spot gold gained 0.07 per cent, trading at $4,143.48 per ounce. Silver was up 0.52 per cent, trading at $57.44 per ounce.
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Gold's weekly return remained more stable, with a 0.70 per cent fall on Monday, while silver faced pressure, dropping 6.33 per cent, said financial analyst and chief investment officer at Century Financial, Vijay Valecha,
After the US Federal Reserve Chairman Kevin Warsh's comments at the IMF annual meeting in Bangkok, gold rose back above $4,180, as traders pulled back on their expectations of rate hikes.
“(Kevin) Warsh didn't say a word about the outcome of the FOMC meeting this month and as a result, the probability of a hike in October has now dropped to 12.7 per cent from 21 per cent a week ago,” he said.
Valecha explained that it was negative for US Treasuries across the curve and has contributed to recent weakness in the US dollar and support for non-yielding bullion. Moreover, oil prices have also retreated from their monthly highs as US President Trump has waived sanctions and tariffs on Russian energy to keep Moscow at the table in the Ukraine talks, he added.
“That has eased inflation fears and expectations of Fed tightening. Gold also picked up safe-haven demand as concerns over AI investments drove a selloff in equities and a fall in bond yields,” he said.