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UAE: Dubai gold price plunges nearly Dh2 per gram – News

Falling global interest rates push prices lower amid uncertainty over U.S. debt ceiling situation

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published: Thursday, May 25, 2023 at 9:56 am

Gold prices plunged nearly two dirhams per gram in Dubai at the open on Thursday as uncertainty over the U.S. debt ceiling situation led to a drop in global interest rates.

24K traded at Dh237.25 a gram on Thursday morning, compared with last night’s close of Dh239.0, according to Dubai Jewelry Group.

Among other variants of the precious metal, 22K opened at Dh219.5 per gram, 21K at Dh212.5 and 18K at Dh182.25.

Spot gold was trading at $1,957.48 an ounce by 9:30 am UAE time, down 0.14%.

Gold prices have been trying to recover from the previous sell-off, but a stronger dollar and higher U.S. Treasury yields continue to cap the upside, which appears to be overshadowing safe-haven flows surrounding the U.S. debt ceiling situation, said Yeap Jun Rong, a market analyst at IG .

U.S. Treasury Secretary Janet Yellen on Wednesday maintained an early June deadline for a debt ceiling default and said she would brief Congress soon on the state of the government’s finances.

Negotiators for Democratic President Joe Biden and Congressional Republican leader Kevin McCarthy held what they said were productive talks on Wednesday to try to strike a deal to raise the $31.4 trillion U.S. debt ceiling and avoid a catastrophic default.

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