Gold Prices Drop: Dubai's Market Insights
Gold Price Drop in Dubai: What's Behind the Yellow Metal?
Gold prices fell in Dubai as the local markets opened on Thursday, following a drop in the precious metal's price to below $2900 per ounce. At 9 a.m. local time, the price of 24-karat gold dropped to 349.25 dirhams per gram, compared to Wednesday's closing price of 350 dirhams. This decrease affects not only the 24-karat variant, but other variations as well: 22-karat gold dropped to 324.75 dirhams, 21-karat to 311.5 dirhams, and 18-karat to 267 dirhams per gram.
This trend is observed globally as well, with spot gold prices at $2896.11 per ounce, marking a 0.69% decrease at 9:10 a.m. Although gold is considered a stable long-term investment, recent price fluctuations have increased uncertainty among investors.
Economic Uncertainty and Trump's Tariff Plans
Gold prices are influenced by numerous factors, but recently economic uncertainty and fears around U.S. President Donald Trump's tariff plans have played a significant role. Tariff wars and trade tensions are causing investors to become more cautious, potentially increasing demand for gold, as the yellow metal is traditionally viewed as a safe haven during economic instability.
According to the investment director at Century Financial, gold's direct support level is around $2900, functioning as a psychological threshold. Should it fall below this value, the next strong support point is expected around $2891. Gold prices are currently moving in a range and stabilizing without significant swings.
The Impact of Tariff Wars on the Gold Market
The demand for gold is primarily influenced by other countries’ retaliatory measures against the U.S. tariff plans, according to an analyst from XS.com. Trade wars not only threaten global economic growth but also carry inflation risks. Gold, as a safe investment, can withstand these challenges and provide protection for investors against financial uncertainties.
Trade tensions and monetary policy tightening can also contribute to the increasing demand for gold. Investors are increasingly seeking assets that retain their value over the long term, with gold playing a prominent role in this regard.
What to Expect in the Future?
The current situation of the gold market is complex, with many factors likely to influence its future. Economic uncertainty, trade wars, and global political tensions continue to play key roles in shaping gold demand. Investors should closely monitor U.S. economic policies and global market reactions, as these directly affect precious metal prices.
Gold remains an attractive investment option, especially for those seeking long-term stability and security. However, due to short-term price fluctuations, investors need to be cautious and thoroughly assess market risks.
Overall, the current state of the gold market reflects the uncertainties of the global economic and political environment. The yellow metal continues to play a crucial role in investors' portfolios and will present numerous challenges and opportunities in the future.
