Gold prices slipped in Dubai amid attacks in the Strait of Hormuz, with the precious metal heading into its third consecutive weekly decline.
The 24K variant of the yellow metal was trading at Dh521.75 per gram at the market open on Monday, down from Dh524 over the weekend. Among the other variants, 22K, 21K, 18K, and 14K, were trading at Dh483.25, Dh463.25, Dh397, and Dh309.75 per gram.
Globally, the spot gold price gained .10 per cent, trading at $4,327.45 per ounce. Silver was trading at $63.87 per ounce, up 0.13 per cent.
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Precious metals are heading for a third consecutive weekly decline of 2 per cent, analysts said, with the latest surge in crude and bond yields driving gold towards.
Ole Hansen, Head of Commodity Strategy, explained that it’s leaving it on course for a third consecutive weekly decline.
“At first glance, weakness in bullion during an intensifying Middle East conflict may appear counterintuitive. However, the transmission mechanism from geopolitics through energy prices and into bond markets currently provides a powerful offset to traditional safe-haven demand,” he said.
However, Hansen said that the current correction doesn’t necessarily undermine the longer-term constructive outlook. “Central-bank demand remains strong, concerns about fiscal sustainability have not disappeared, and the latest energy shock may ultimately reinforce demand for inflation protection and portfolio diversification,” he said, adding that in the short term, the direction of yields and the dollar remain dominant.
“Silver and platinum have suffered even greater losses this week, reflecting their additional exposure to the deterioration in industrial-metal sentiment,” the analyst added.
Source: Khaleej Times