The precious metal dropped below $4,500 an ounce during the late session on Monday, causing old prices in Dubai to drop more than Dh11 per gram. On Monday night, the price of 24K gold was selling at Dh536.25 per gram, down Dh11.25 from Dh547.5 per gram at Friday’s market closing.
At $4,467 per ounce, spot gold was down 1.23%. Earlier in the day, it dropped by almost 2% to $4,451 per ounce as rising tensions in the Middle East heightened inflation worries and strengthened views that central banks could maintain tighter monetary policy for longer. Gold saw fresh selling pressure on Monday, according to Century Financial’s chief investment officer, Vijay Valecha.
A stronger US dollar and ongoing forecasts of higher-for-longer interest rates continue to put pressure on bullion. With uncertainty surrounding ceasefire talks and regional security keeping energy markets unpredictable, gold is still heading downward as markets closely track current US-Iran developments and Middle East geopolitical issues, he said.
Valecha went on to say that while rising oil prices have increased worries about fresh inflationary pressures, which have historically supported gold, they have also strengthened expectations that the US Federal Reserve may continue its restrictive policy stance for an extended period of time, creating a bearish environment for non-yielding assets like gold.
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