Dubai – Gold prices in the UAE fell slightly on Thursday after reaching record levels during the week, sending buyers optimism about a larger correction on the way.
In the morning trade, 22K gold was at Dh416 a gram and 24K at Dh449.5, some Dh3 less than Tuesday's record highs of Dh418.75 and Dh452.25 respectively. The fall follows a five-week rally sparked by the US Federal Reserve's initial interest rate cut for the year, central bank buying, and pick-up in gold-backed exchange-traded fund inflows.
In India, gold prices also rose, quoted at ₹11,536 per gram for 24-carat and ₹10,575 for 22-carat. On the global side, bullion fell to about $3,745 an ounce, just short of $50 from Tuesday's high. Silver also rose sharply, solidifying both metals as leading performing commodities this year.
Analysts indicate a near-term correction is conceivable, but any retreat is likely to be short-lived in the face of persistent central bank buying, robust ETF demand, and speculation about China's role in holding sovereign reserves. Traders are continuing to watch for cues from the US Federal Reserve, after Chair Jerome Powell issued a warning that jobs and inflation face risks without specifying if additional cuts in rates are in consideration in October.
