UAE: Gold falls as fears of global banking crisis ease – News

The decline followed a rise in appetite for riskier assets and weakening demand for the safe-haven metal

Gold prices fell on Wednesday as easing fears that the global banking crisis could have a wider impact boosted appetite for riskier assets and dampened demand for the safe-haven metal.

Spot gold was down 0.33% at $1,965.42 an ounce by 9:40 am UAE time.

In the UAE, 24-karat gold was trading at Dh238.0 per gram at the market open on Wednesday. Meanwhile, 22K, 21K and 18K opened at D220.5, Dh213.25 and Dh182.75 per gram respectively.

Matt Simpson, senior market analyst at City Index, said: “We’re seeing a natural retracement…gold is pulling back after failing to ‘bid’ above $1,975.”

But some investors “seem to still be holding gold ‘in case’ you still have a skeleton or two in the closet,” he said, adding that gold could see another wave of buying during the European session.

Gold broke through $2,000 twice last week, but both attempts failed to consolidate above the important level, said Alex Kuptsikevich, senior market analyst at FxPro. The double correction since last week has cleared the way to the upside, but does not signal that gold is in trouble.

“Gold’s rebound momentum from its eight-day low pushed it up more than $200 at its high, creating a short-term overbought situation. Last week, gold briefly fell below $1,940 too quickly and too impulsively to pave the way for an upside, “He said.