Due to ongoing pressure on the precious metal, gold prices fell Dh1.75 per gram in early trading on Friday in Dubai. When markets began on Friday, the price of 24K gold was down from Dh547.50 per gram at the end of trading on Thursday to Dh545.75 per gram. Since this month’s peak of Dh570.75 per gram on May 11, it has decreased by Dh25 per gram.
At $4,532.95 per ounce, spot gold was down 0.18%. Precious metals are still under pressure, according to Vijay Valecha, Chief Investment Officer at Century Financial, as the protracted resolution of the US-Iran conflict keeps energy costs high and supports the rise in Treasury yields.
Compared to gold, silver’s price fluctuates more. For precious metals, the path of least resistance is still lower, he stated. Less than a day after declaring he had just canceled a US attack, US President Donald Trump warned to restart strikes on Iran in the coming days as part of an effort to end the war.
There are other factors driving up yields besides the Iranian conflict. Growing fiscal concerns about increased government expenditure to boost economic growth have been the other driver. Valecha continued, “TIPS yields (real yields) have surged, indicating investors anticipate an increase in inflation-adjusted borrowing costs, which is another reason for the dimming upside for precious metals.
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