Spot gold was trading in negative territory at $1,931.98 an ounce at 9:18 AM UAE time
Gold prices in the United Arab Emirates plunged nearly 3 dirhams per gram on Thursday morning after the Fed paused in raising interest rates.
The 24K opened at Dh234.25 a gram and closed at Dh237.0 a gram last night, down Dh2.75 a gram, according to Dubai Jewelry Group. Likewise, 22K, 21K and 18K also opened at Dh216.75, Dh209.75 and Dh180.0 per gram respectively.
Spot gold was trading in negative territory at $1,931.98 an ounce at 9:18 am UAE time.
The Fed did not raise rates at the end of its meeting on Wednesday. However, analysts expect further rate hikes later this year, from 5.0-5.25 to 5.50-5.75% by the end of 2023.
Falling prices will boost demand for the precious metal and its jewellery, in the UAE.
Dubai-based financial services provider Century Financial said a break below $1,930 could see a correction towards $1,912 and then $1,890.
Bas Kooijman, chief executive officer and asset manager at DHF Capital, said the UAE’s precious metals market, including gold, jewellery, bullion and silver, was worth AED8.52 billion in 2020 and is expected to reach a value of AED13.21 billion by 2030 , with a compound annual growth rate of 3.66%.